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ble Costing and Budgeting ( i ) The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter
ble Costing and Budgeting i
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
tablestndrdthUnits to be produced,Quarter,Quarter Quarter Quarter,,
In addition, grams of raw materials inventory is on hand at the start of the st quarter and the beginning accounts payable for the st quarter is $
Each unit requires grams of raw material that costs $ per gram. Management desires to end each quarter with an inventory of raw materials equal to of the following quarter's production needs. The desired ending inventory for the th quarter is grams. Management plans to pay for of raw material purchases in the quarter acquired and in the following quarter. Each unit requires direct labourhours and direct labourers are paid $ per hour.
Required:
Prepare the company's direct materials purchases budget and schedule of expected cash disbursements for materials for the upcoming fiscal year.
tableZan CorporationDirect Materials Budgetst Quarter,nd Quarter,rd Quarter,th Quarter,YeartableRequired production in units of finished goodsUnits of raw materials needed per unit of finished goodstableUnits of raw materials needed per unit of finished goodsUnits of raw materials needed to meet productionUnits of raw materials needed to meet production,Total units of raw materials needed,Units of raw materials to be purchased,tableUnit cost of raw materialsCost of raw materials to be purchasedCost of raw materials to be purchased,$$
Prepare the companies direct labour hour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecast number of units produced
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