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The following information is from the manufacturing budget and budgeted financial statements of Ulta Corp.: Direct...

The following information is from the manufacturing budget and budgeted financial statements of Ulta Corp.:

Direct materials inventory, 1/1 $ 84,000
Direct materials inventory, 12/31 $ 100,000
Direct materials budgeted for use during year $ 342,000
Accounts payable to suppliers, 1/1 $ 52,000
Accounts payable to suppliers, 12/31 $ 62,000

For the year, budgeted cash payments to suppliers amounted to:

Multiple Choice

  • $358,000.

  • $348,000.

  • $326,000.

  • $368,000.

Solutions

Expert Solution

Option 2nd is correct. i.e $348,000

Budgeted cash payments to suppliers during the year
Particulars Amount($)
Budgeted purchases of direct materials                             3,58,000
Add: Opening Accounts Payable                                52,000
Total Amount payable to suppliers                             4,10,000
Less: Closing Accounts Payable                                62,000
Budgeted cash payments to suppliers                             3,48,000
Therefore, Budgeted cash payments to suppliers during the year is $ 3,48,000
Budgeted Direct material to be purchased as follows:
Particulars Amount
Budgeted Direct Material to be Use                             3,42,000
Less: Direct Material opening Inventory                                84,000
Add: Direct Material closing Inventory                             1,00,000
Budgeted purchases of direct materials                             3,58,000

ekkarill92 answered 1 year ago
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