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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: 1 st
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
st Quarter nd Quarter rd Quarter th Quarter
Units to be produced
In addition, grams of raw materials inventory is on hand at the start of the st quarter and the beginning accounts payable for the st quarter is $
Each unit requires grams of raw material that costs $ per gram. Management desires to end each quarter with an inventory of raw materials equal to of the following quarters production needs. The desired ending inventory for the th quarter is grams. Management plans to pay for of raw material purchases in the quarter acquired and in the following quarter. Each unit requires direct labourhours and direct labourers are paid $ per hour.
Required:
Prepare the companys direct materials purchases budget and schedule of expected cash disbursements for materials for the upcoming fiscal year.
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