5 The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 10 points Units to be produced 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 5,900 8,900 7,900 6,900 In addition, 6,900 grams of raw materials inventory is on hand at the start of the 1st quarter and the beginning accounts payable for the 1st quarter is $3,780. Each unit requires 8.90 grams of raw material that costs $1.20 per gram. Management desires to end each quarter with an inventory of raw materials equal to 10% of the following quarter's production needs. The desired ending inventory for the 4th quarter is 8,900 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labour-hours and direct labourers are paid $9.70 per hour. Required: 1. Prepare the company's direct materials purchases budget and schedule of expected cash disbursements for materials for the upcoming fiscal year. Required production in units of finished goods Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Add: Desired units of ending raw materials inventory Total units of raw materials needed Less: Units of beginning raw materials inventory Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to be purchased Answer is not complete. Zan Corporation Direct Materials Budget 1st Quarter 5,900 8.90 2nd Quarter 8,900 8.90 3rd Quarter 52,510 792 79,210 7,900 8.90 70,310 4th Quarter 6,900 8.90 61,410 Year 29,600 8.90 263,440 890 53,302 80,100 70,310 61,410 263,440 6,900 46,402 80,100 70,310 61,410 263,440 $ $ 1.20 55,682 $ 1.20 $ $ 96,120 $ 1.20 $ 84,372 $ 1.20 $ 73,692 $ 1.20 316,128