Exercise 8-16 (Algo) Direct Materials and Direct Labor Budgets (L08-4, L08-5) The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced 1st Quarter 12,000 2nd Quarter 15,000 3rd Quarter 14,000 4th Quarter 13,000 In addition, 15,000 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 $6,200. Each unit requires 5 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% of the following quarter's production needs. The desired ending inventory for the 4th Quarter is 5,000 grams. Management plans to pay for fo% 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 $13,50 per hour Required: 1.82. 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. Answer is complete but not entirely correct. Required: 1,82. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarte 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 Calculate the estimated grams of raw inaterial that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole. 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Estimated grams of raw material to be purchased 60.000 75,000 70,000 65,000 270,000 Cost of raw materials to be purchased $ 114,750 $ 148,050 $ 135,450 $ 108,900 $ 515,250 Year Reganga Req3 > Required: 1.82. 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg4 Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole. 2nd 1st Quarter $ 75,050 3rd Quarter 4th Quarter Quarter Year Total cash disbursements for materials 134,730 140,490 119,520 469,790 Required: 1.82. 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Calculate the estimated direct labor cost for each quarter and for the year as a whole. (Round "Direct labor-hours per unit" and "Direct labor cost per hour answers to 2 decimal places.). 3rd 1st 2nd Quarter Quarter $ 64,800 $ 81,000 4th Quarter Quarter $ 75,800 $ 70,200 Year Total direct labor cost $ 291,600
