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The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: In addition,
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: In addition, 16,000 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 $7,000. Each unit requires 4 grams of raw material that costs $1.80 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 4 the 2, 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. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases and for the year as a whole. Req 1 and 2 Req 3 Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole. \begin{tabular}{|l|c|c|c|c|c|} \hline & & 1st & 2nd & 3rd & 4th \\ \cline { 2 - 6 } & Quarter & Quarter & Quarter & Quarter \\ \hline Total cash disbursements for materials & & & & \\ \hline \end{tabular} Calculate the estimated direct labor cost for each quarter and for the year as a whole. (Round "Direct labor-hours per unit" and "Direct labor cost per hour" answers to 2 decimal places.)
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