Exercise 23.1 Budgeting Purchases and Cash Payments (LO23-4, LO23-5) The following information is from the manufacturing budget and the budgeted financial statements of Fabor Fabrication. Direct materials inventory, January 1 Direct materials inventory, December 31 Direct materials budgeted for use during the year Accounts payable to suppliers of materials, January 1 Accounts payable to suppliers of materials, December 31 $ 68,000 173,000 280,000 50,000 79,000 a. Compute the budgeted amount for purchases of direct materials during the year. b. Compute the budgeted amount for cash payments during the year to suppliers of materials. a. Budgeted amount for purchases of direct materials b. Budgeted cash payments $ | $ 143,000 114,000