0 Required information The following information applies to the questions displa
ID: 2520185 • Letter: 0
Question
0 Required information The following information applies to the questions displayed below. The following information is from the manufacturing budget and budgeted financial statements of Altman Corp Direct materials inventory, 1/1 Direct materials inventory, 12/31 Direct materials budgeted for use during year Accounts payable to suppliers, 1/1 Accounts payable to suppliers, 12/31 $ 88,000 104,000 346,000 $ 56,000 66,000 For the year, budgeted cash payments to suppliers amounted to: Multiple Choice $372.000 $330,000. $362,00O.
Explanation / Answer
Answer is $352,000
Direct Materials purchase = Direct Materials Inventory, 12/31 + Direct Materials used - Direct Materials Inventory, 1/1
Direct Materials purchase = $104,000 + $346,000 - $88,000
Direct Materials purchase = $362,000
Cash Payment to Suppliers = Accounts Payable, 1/1 + Direct Materials purchase - Accounts Payable, 12/31
Cash Payment to Suppliers = $56,000 + $362,000 - $66,000
Cash Payment to Suppliers = $352,000
Budgeted Cash payments to suppliers amounted to $352,000
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