Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Zan Corporation's production budget for next year contains the following estimates: 1st Quarter 2nd Quarter Units to be produced 3rd Quarter 4th Quarter 16, 000

image text in transcribed
Zan Corporation's production budget for next year contains the following estimates: 1st Quarter 2nd Quarter Units to be produced 3rd Quarter 4th Quarter 16, 000 19,000 18,000 17,000 In addition, 16,000 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 $7,000. Each unit requires 4 grams of raw materials that cost $1.80 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 5,000 grams. Management plans to pay for 60% of raw materials 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: 1. and 2. Calculate the estimated grams of raw materials 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. Complete this question by entering your answers in the tabs below

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

Modern Advanced Accounting In Canada

Authors: Murray Hilton

6th Edition

0070001537, 978-0070001534

More Books

Students also viewed these Accounting questions

Question

Distinguish between operating mergers and financial mergers.

Answered: 1 week ago

Question

Do not come to the conclusion too quickly

Answered: 1 week ago

Question

Engage everyone in the dialogue

Answered: 1 week ago