Exercise 8-16 (Algo) Direct Materials and Direct Labor Budgets [LO8-4, LO8-5] The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: In addition, 20,000 grams of raw materials inventory is on hand at the start of the 1 st Quarter and the beginning accounts payable for the 1st Quarter is $5,800 Each unt requires 8 grams of raw material that costs $1.40 per gram Management desires to end each quarter with an inventory of raw materials equel to 25% of the following quarter's production needs. The desired ending inventory for the 4 th Quarter is 7,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter, Each unit requires 0.40 direct labor-hours and direct laborers are paid 511.50 pet hour Required: 1. and 2. Calculate the estimated grams of raw material that need to be burchased and the cost of raw material purchases for each quater and for the year as a whole, 3. Calculate the expected cash disbursements for purchases of mater als for each cuenter and for the year as a whole. 4. Calculate the estimated cirect labor cost for each cuarter and for the year as a whole