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Schedule of Expected Cash Disbursements for Materials Beginning accounts payable 1st Quarter purchases 2nd Quarter purchases 3rd Quarter purchases 4th Quarter purchases Total cash disbursements

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Schedule of Expected Cash Disbursements for Materials Beginning accounts payable 1st Quarter purchases 2nd Quarter purchases 3rd Quarter purchases 4th Quarter purchases Total cash disbursements for materials 2. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecast number of units produced. Zan Corporation Direct Labour Budget 1 st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Required production in units Direct labour-hours per unit Total direct labour-hours needed Direct labour cost per hour Total direct labour costProblem 9-15 Direct Materials Purchases and Direct Labour Budgets [LO2] The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year. 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Units to be produced 5,400 8,400 7,400 6,400 In addition, 6.400 grams of raw materials inventory is on hand at the start of the ist quarter and the beginning accounts payable for the 1st quarter is $3,280. Each unit requires 8.40 grams of raw material that costs $1.40 per gram. Management desires to end each quarter with an inventory of raw materials equal to 30% of the following quarter's production needs. The desired ending inventory for the 4th quarter is 8,400 grams. Management plans to pay for 50% of raw material purchases in the quarter acquired and 50% in the following quarter. Each unit requires 0.30 direct labour-hours and direct labourers are paid $10.70 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. Zan Corporation Direct Materials Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Required production in units of finished goods Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to be purchased

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