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: In addition, 1 6 , 0 0 0 grams of raw materials inventory is

Zan Corporation's production budget for next year contains the following estimates:
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:
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.
Calculate the expected cash disbursements for purchases of materials 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.
Required 1
and 2
Calculate the estimated direct labor cost for each quarter and for the year as a whole.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions