The following information is from the manufacturing budget and the budgeted financial statements of Fabor Fabrication.

Direct materialJan. 1$68000

Direct materialDec. 31107000

Directed material budgeted for use during the year250000

Account payable to supplier of materials, Jan 150000

Account payable to suppliers of materials, Dec. 3179000

Required:

a.What is the budgeted amount for purchases of direct materials during the year.

b.What is the budgeted amount for cash payments during the year to suppliers of materials.