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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: In addition,
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, 6,000 grams of raw materials inventory is on hand at the start of the ist Quarter and the beginning accounts payable for the ist Quarter is $2.880 Each unit requires 8 grams of raw material that costs $120 per gram. Management desires to end each quartet with an inventory of raw materials equal to 25% of the following quarter's production needs. The desired ending inventory for the 4 th Quarter is 8000 grams. Management plans to pay for 60% of raw material parchases 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 hout Required: 1 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 3. Calculate the expected cash disbursements for purchases of materiais for each quarter and for the year as a whole. 4. Calculaterthe estimated direct labor cost for each quater and for the year as a whole
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