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, $8,000$ grams of raw materials inventory is on hand at the start of the $1$ st quarter and the beginning accounts payable for the $18t$ quarter is $$4,880.$

Each unit requires $10\mathrm{.}00$ grams of raw material that costs $$1\mathrm{.}60$ per gram. Management desires to end each quarter with an inventory of raw materlals equal

to $20\%$ of the following quarter's production needs. The desired ending inventory for the $4$ th 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 $0\mathrm{.}40$ direct labour$-$hours and direct labourers are paid

$$7\mathrm{.}50$ per hour.

Required:

Prepare the company's direct materials purchases budget and schedule of expected cash disbursements for materials for the upcoming fiscal year.

Zan Corporation

Direct Materials Budget

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.