Units of production:

7,500

8,100

6,800

7,200

Inventory on hand at the start of 1st Qtr is 6,000 grams Beginning accounts payable for the 1st quarter is $3,450. Each unit requires 9 grams of raw materials that costs $1.30 per gram. Management desires to end each quarter with an inventory of raw materials equal to 30% of the following quarter production needs. The desired ending inventory for the 4th quarter is 8,000 grams. Management plans to pay 70% of raw material purchases in the quarter acquired and 30% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid $16 per hour.

1.&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 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. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced.