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: table

The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
\table[[1st Quarter,2nd Quarter,3rd Quarter,4th Quarter,],[Units to be produced,24,000,27,000,26,000,25,000]]
In addition, 42,000 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 $8,600.
Each unit requires 7 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 4th Quarter is 5,000 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:
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.
Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.
Calculate the estimated direct labor cost for each quarter and for the year as a whole.
Complete this question by entering your answers in the tabs below.
image text in transcribed

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_2

Step: 3

blur-text-image_step3

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

More Books

Students also viewed these Accounting questions

Question

What is your greatest weakness?

Answered: 1 week ago