Exercise $8-16($Algo$)$ Direct Materials and Direct Labor Budgets $[$LO$8-4,$ LO$8-5]$

The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

$1$st Quarter $2$nd Quarter $3$rd Quarter $4$th Quarter

Units to be produced $25,00028,00027,00026,000$

In addition, $50,000$ grams of raw materials inventory is on hand at the start of the $1$st Quarter and the beginning accounts payable for the $1$st Quarter is $$8,800.$

Each unit requires $8$ grams of raw material that costs $$1\mathrm{.}20$ per gram. Management desires to end each quarter with an inventory of raw materials equal to $25\%$ of the following quarter$$s production needs. The desired ending inventory for the $4$th Quarter is $8,000$ grams. Management plans to pay for $60\%$ of raw material purchases in the quarter acquired and $40\%$ in the following quarter. Each unit requires $0\mathrm{.}20$ direct labor$-$hours and direct laborers are paid $$11\mathrm{.}50$ per hour.

Required:

$1.$ and $2.$ 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.