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

$1\mathrm{.}25$

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

In addition, $6,000$ 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 $$5,000.$

Each unit requires $4$ grams of raw material that costs $$1\mathrm{.}40$ per gram. Management desires to end each quarter with an inventory of raw materials equal to $25\%$ of the following quarter's production needs. The desired ending inventory for the $4$ th Quarter is $7,000$ grams. Management plans to pay for $60\%$ of raw material purchases in the quarter acquired and $40\%$ in the following quarter. Each unit requires $0\mathrm{.}40$ direct labor$-$hours and direct laborers are paid $$12\mathrm{.}50$ per hour.

Required:

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.

Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.

Calculate the estimated direct labor cost for each quarter and for the year as a whole.

Complete this question by entering your answers in the tabs below.

Req $1$ and $2$

Req $3$

Req $4$

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.

$\backslash$table$[[,1$st$,2$nd$,3$rd$,4$th$,$Year$],[,$Quarter,Quarter,Quarter,Quarter$],[$Estimated grams of raw material to be purchased,$24,000,,,,],[$Cost of raw materials to be purchased,,,,,$]]$