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Zan Corporation's production budget for next year contains the following estimates: In addition, 4 2 , 0 0 0 grams of raw materlals Inventory is

Zan Corporation's production budget for next year contains the following estimates:
In addition, 42,000 grams of raw materlals Inventory is on hand at the start of the 1st Quarter and the beginning
accounts payable for the 1 st Quarter is $8,600.
Each unit requires 7 grams of raw materlals that cost $1.80 per gram. Management desires to end each quarter with
an Inventory of raw materlals equal to 25% of the following quarter's production needs. The desired ending inventory
for the 4th Quarter is 5,000 grams. Management plans to pay for 60% of raw materlals purchases in the quarter
acquired and 40% in the following quarter. Each unit requires 0.40 direct labor-hour and direct laborers are paid
$12.50 per hour.
Required:
and 2. Calculate the estlmated grams of raw materlals that need to be purchased and the cost of raw materlal
purchases for each quarter and for the year as a whole.
Calculate the expected cash disbursements for purchases of materlals for each quarter and for the year as a whole.
Calculate the estimated direct labor cost for each quarter and for the year as a whole.
Complete this question by entering your answers in the tabs below.
Calculate the estimated direct labor cost for each quarter and for the year as a whole.
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