Homework Answers
Answer-a)- The budgeted amount for purchases of direct materials during the year is = $385000.
Explanation-
| Particulars | Amount |
| $ | |
| Direct material budgeted for use during the year | 280000 |
| Add- Ending raw materials inventory | 173000 |
| Raw materials required | 453000 |
| Less- Beginning raw materials inventory | 68000 |
| Raw materials purchases | 385000 |
b)- The budgeted amount for cash payments during the year to suppliers of materials is =$356000.
Explanation-
| Particulars | Amount |
| $ | |
| Raw materials purchases | 385000 |
| Add- Accounts payable to suppliers of materials, January 1 | 50000 |
| Raw materials required | 435000 |
| Less- Accounts payable to suppliers of materials, December 31 | 79000 |
| Budgeted payments to suppliers | 356000 |
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