Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units

image text in transcribedimage text in transcribedimage text in transcribed

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 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 6,000 9,000 8,000 7,000 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 $5,000. Each unit requires 4 grams of raw material that costs $1.40 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 4th 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 0.40 direct labor-hours and direct laborers are paid $12.50 per hour. Required: 1. 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. 3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole. 4. Calculate the estimated direct labor cost for each quarter and for the year as a whole. Answer is complete but not entirely correct. 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. Estimated grams of raw material to be purchased Cost of raw materials to be purchased 1st Quarter 6,000 > $ 33,600 2nd Quarter 9,000 $50,400 3rd Quarter 4th Quarter Year 8,000 7,000 30,000 $44,800 $39,200 ( 168,000 < Req 1 and 2 Req 3 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total cash disbursements for materials $ $ 20,160 $ 42,240 $ 47,680 $42,080 ( 152,160 < Req 1 and 2 Req 4 > Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Calculate the estimated direct labor cost for each quarter and for the year as a whole. Total direct labor cost $ 1st Quarter 2nd Quarter 75,000 $ 112,500 $ 3rd Quarter 4th Quarter Year 100,000 $ 87,500 $ 375,000 > < Req 3 Req 4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting concepts and applications

Authors: Albrecht Stice, Stice Swain

11th Edition

978-0538750196, 538745487, 538750197, 978-0538745482

More Books

Students also viewed these Accounting questions

Question

What is the accountants primary role in conceptual design?

Answered: 1 week ago

Question

What are conversion costs? What are prime costs?

Answered: 1 week ago

Question

How does a DSL modem differ from a DSLAM?

Answered: 1 week ago

Question

Explain how ADSL works.

Answered: 1 week ago

Question

What is a POP?

Answered: 1 week ago