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home / study / business / accounting / accounting questions and answers / adi manufacturing corporation is estimating the following raw material purchases for the final ... Question: Adi Manufacturing Corporation is estimating the following raw material purchases for the final fo... Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year: September $822,000 October $1,096,000 November $842,000 December $842,000 At Adi, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in the month following the purchase. In Adi's budgeted balance sheet at December 31, at what amount will accounts payable for raw materials be shown?

Explanation / Answer

Accounts payable for raw materials = 842000*75%= 631500

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