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 2nd 3rd 4th Quarter Quarter Quarter Quarter 6,600 9,600 8,600 7,600 In addition, 7,600 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 $4,480. Each unit requires 9.60 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 9,600 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 $8.30 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. 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 Cost of raw materials to be purchased Zan Corporation Direct Materials Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year 6,600 9,600 8,600 7,600 32,400 9.60 9.60 9.60 9.60 63,360 92,160 82,560 72,960 9.60 311,040 27,648 24,768 21,888 9,600 9,600 91,008 116,928 104,448 82,560 320,640 7,600 27,648 24,768 21,888 7,600 83,408 89,280 79,680 60,672 313,040 $ $ 116,771 1.40 $ $ 1.40 $ 124,992 $ 1.40 $ 111,552 $ 1.40 $ 1.40 84,941 $ 438,256 Beginning accounts payable 1st Quarter purchases 2nd Quarter purchases 3rd Quarter purchases Schedule of Expected Cash Disbursements for Materials 4th Quarter purchases Total cash disbursements for materials EA $ 0 0 $ 0 $ 0 0 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. Required production in units Direct labour-hours per unit Total direct labour-hours needed Direct labour cost per hour Total direct labour cost Zan Corporation Direct Labour Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year 0 0 0 0 0 0 $ 0 $ 0 0 $ 0