PROBLEM 9-15 Direct Materials Purchases and Direct Labour Budgets [LO2Q1 produced by The production department of Zan Corporation has submitted the following forecast of units to quarter for the upcoming fiscal year: 1st 2nd 4th 3rd Quarter Quarter Quarter Quarter Units to be produced 5,000 8,000 7,000 6,000 In addition, 6,000 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 $2,880. Each unit requires 8 grams of raw material that costs $1.20 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 4th 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 0.20 direct labour-hours and direct labourers are paid $11.50 per hour. Required: 1. Prepare the company's direct materials purchases budget and schedule of expected cash disbursements for materials for the upcoming fiscal year. 2. Prenare the comnany's direct labour budget for the incoming fiscal wear assuming that the direct labour workforce is adisted mute Start Video