Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kindly provide answer for all the questions. e Que. Na 1b. The production department of ABC Company has submitted the following forecasts of units to
Kindly provide answer for all the questions. e
Que. Na 1b. The production department of ABC Company has submitted the following forecasts of units to be produced by quarter for the upcoming fiscal year 1" quarter 2 quarter 3 quarter 4 quarter Units to be 6.000 7.000 8.000 3.000 produced In additionthe beginning www materials inventory for the first quarter is budgeted to be 3600 pounds and the beginning accounts payable for the latter is budgeted to be $11,775. Each mit requires the pounds of raw materials that costs $2.5 per pound Management desires to end each quatter with an inventory of materials qual to 20% of the following quarter's production needs of raw materials. The desired ending inventory for the fourth quarter is 3700 pounds. Management plans to pay for 70% of raw material purchases in the quarter acquired and 30% in the following quarter Each is requires 50 direct labox hours and direct labor workers are paid 512 per bow Required: 1. Prepare the Company's Direct Materials Purchase Budget by quarter and for the year 2. Prepare the Cash disbursement schedule for materials by quarter and for the year 3. If the company followed some cast payment policy in the last year, like the current year, low nich was the rol wat for credit purchase of inventory for the last quarter of the last year? 4. Construct the Company's direct labor beadget for each quarter assuming that the direct labor workforce is not austed each quarter Instead assume that the Company's direct labor force consists of permanent employees who me guaranteed to be paid for at least 3.000 hours of wok each quarter of the amber of required direct labor bonus is less than this uber the workers are paid for 3.000 hours anyway. Alty liders worked in excess of 3000 lours in a quarter are paid at the rate of 15 times the bourly rate for direct laborStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started