AZ Products

The marketing department of AZ Products has submitted the following sales forecast for the upcoming fiscal year:

$\backslash$table$[[,1$st Quarter,$2$nd Quarter,$3$rd Quarter,$4$th Quarter$],[$Budgeted sales $($units$),10,000,9,000,6,000,8,000]]$

The company is set to start the first quarter with an inventory of $3,200$ units of finished goods. The goal is to maintain an ending inventory of finished goods each quarter that equals $20\%$ of the next quarter's projected sales, with a target of $3,400$ units for the end of the fourth quarter.

The initial raw materials inventory for the first quarter is projected at $6,240$ kilograms, and the starting accounts payable is estimated at $$29,640.$

Each unit produced requires two kilograms of raw material, priced at $$8$ per kilogram. The company's objective is to conclude each quarter with raw material inventory that is $10\%$ of the next quarter's production requirements, aiming for $6,280$ kilograms by the end of the fourth quarter. Furthermore, the company intends to pay $75\%$ of the raw material purchases in the quarter of acquisition and the remaining $25\%$ in the subsequent quarter.

Required:

Prepare the company's production budget for the upcoming fiscal year. $(4$ marks$)$

Prepare a schedule of expected cash disbursements for materials for the upcoming fiscal year. $(6$ marks$)$