Budgeting Purchases and Cash Payments

The following information is from the manufacturing budget and the budgeted financial statements of Schenck Development Partners.

Direct materials inventory, January 1 $100,000

Direct materials inventory, December 31 $115,000

Direct material usage budgeted for the year $375,000

Accounts payable to suppliers of materials, January 1, $64,000

Accounts payable to suppliers of materials, December 31 $112,000

A.Compute the budgeted amounts for Purchases of direct materials during the year.

B. Cash payments during the year to suppliers of materials.