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 6,000 1st

image text in transcribed
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year 6,000 1st Quarter 2nd Quarter and Quarter 4th Quarter Units to be produced 5,000 8.000 77,000 In addition, 6,000 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 $2.880. Each unit requires 8 grams of raw material that costs $1.20 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 8.000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid $15 per hour. Required: 1.82. Calculate the estimated gram 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

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: 3

blur-text-image

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

Data And Analytics In Accounting An Integrated Approach

Authors: Guido Geerts, Ann C. Dzuranin, Margarita Lenk

1st Edition

1119722993, 978-1119722991

More Books

Students also viewed these Accounting questions