1. The production department of Zan Corporation

The production department of Ian Corporation has submitted the following forecast of units to be produced by quarter for the upcoming scal yeah is: warts- _ ' ' ' r-' :idd.'ma_ec WQuar-ter' it] mart-er Units to be produced 16,663 19,339 13,333 1?,636: ' ln addition, 15,000 grams of raw materials inventoryr is on hand at the start ofthe 1st Quarter and the beginning accounts payable for the let lCluarter is $1000. Each unit requires 4 grams of raw material that costs $1.80 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% ofthe following quarter's production needs. The desired ending inventory for the 4th Quarter is 5,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.40 direct labor-hours and direct laborers are paid $12.50 per hour. Required: 1.63:2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole. 3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole. 4. Calculate the estimated direct labor cost for each quarter and for the year as a whole. \fReq 1 and 2 Req 3 Req 4 Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole. ist 2nd 3rd 4th Quarter Quarter Quarter Quarter Year Estimated grams of raw material to be purchased Cost of raw materials to be purchased Req 1 and 2 Req 3 >Reg 1 Reg 2 Reg 3 Reg 4 and 5 Reg 6 Calculate the expected cash collections, by month and in total, for the third quarter. July August September Quarter Total cash collections Reg 1 Reg 2 Reg 3 Reg 4 and 5 Reg 6 Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. July August September October Required production in units Reg 1 Reg 2 Reg 3 Reg 4 and 5 Reg E 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. (Round your Unit cost of raw materials to 2 decimal places.) July August September Quarter Total units of raw materials to be purchased Cost of raw materials to be purchased \fReg 1 Reg 2 Reg 3 Reg 4 and 5 Reg 6 Calculate the estimated sales, by month and in total, for the third quarter. July August September Quarter Budgeted sales Reg 1 Req 2 >Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 36,590 October 26, 506 August 83,809 November 13,909 September 52, 298 December 13, 598 The selling price of the beach umbrellas is $10 per unit. b. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 65% in the month following sale 5% uncollectible Sales for June totaled $320,000. c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the end of June. d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be: June 38 86, 950 feet September 30 ? feet e. Gilden costs $0.80 per foot. One-half of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $60,920. Required: 1. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. Calculate the expected cash disbursements for raw material (Gilden) purchases. by month and in total, for the third quarter.Req 1 and 2 Req 3 Reg 4 Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole. 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Year Total cash disbursements for materials \fReg 1A Req 18 Reg 1C Req 1D Reg 2 Calculate the budgeted merchandise purchases for month of July. Budgeted merchandise purchases for July