The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 151: 2nd 3rd 4th Quarter Quarter Quarter Quarter Units to be produced 7,666 16,666 9,666 8,666 In addition. 8,000 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 $4,880. Each unit requires 10.00 grams of raw material that costs $1.60 per gram. Management desires to end each quarter with an inventory of raw materials equal to 20% ofthe following quarter's production needs. The desired ending inventory for the 4th quarter is 10.000 grams. Management plans to pay for 80% of raw material purchases in the quarter acquired and 20% in the following quarter. Each unit requires 0.40 direct labourhours and direct labourers are paid $7.50 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 ofnished goods Units of raw materials needed per unit of nished goods Units of rawr materials needed to meet production Units of raw materials to be purchased 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 scal 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 labourhours per unit "otal direct labourhours needed 2,800 Direct labour cost per hour 'otal direct labour cost $ 21,000 $ 4,000 30,000 $ 7,000 10,000 9,000 0,000 .EEI-IE_.IE 3,000 2?,000 3,200 34,000 13,600 $ 7.50 $ T50 $ 150 $ 150 $ 7.50 $ 24,000 is 102,000