The following information is from the manufacturing budget and the budgeted financial statements of Fabor Fabrication.
Direct materials inventory, January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 80,000
Direct materials inventory, December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,000
Direct materials budgeted for use during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000
Accounts payable to suppliers of materials, January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000
Accounts payable to suppliers of materials, December 31 . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
Compute the budgeted amounts for:
a. Purchases of direct materials during the year.
b. Cash payments during the year to suppliers of materials?