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 5,400 8,400 7,400 6,400 Units to be produced In addition, 6,400 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 $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. Answer is complete but not entirely correct. Zan Corporation Direct Materials Budget 1st 2nd Quarter Quarter 5,400 8,400 3rd Quarter Year 4th Quarter 6,400 7,400 27,600 8.40 8.40 8.40 8.40 8.40 53,760 231,840 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 Add: Desired units of ending raw materials inventory Total units of raw materials needed Less: Units of beginning raw materials inventory Units of raw materials to be purchased Unit cost of raw materials 45,360 21,168 66,528 6,400 60,128 70,560 18,648 89,208 62,160 16,128 78,288 18,648 59,640 8,400 62,160 16,128 46,032 64,344 296,184 62,344 X 233,840 21,168 68,040 $ 1.40 1.40 $ 1.40 $ 1.40 $ 1.40 Cost of raw materials to be purchased $ 84,179 $ 95,256 $ 83,496 $ 64,445 $ 327,376 X Answer is not complete. $ Schedule of Expected Cash Disbursements for Materials Beginning accounts payable $ 3,280 1st Quarter purchases 42,090 $ 42,090 2nd Quarter purchases 47,628 $ 47,628 3rd Quarter purchases 41,748 $ 41,748 4th Quarter purchases Total cash disbursements for $45,370 $ 89,718 $ 89,376 $ 41,748 materials 3,280 84,180 95,256 83,496 $ 266,212