Question

Can someone explain number 1 I forgot how I solved this

The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced 1st Quarter 22,000 2nd Quarter 25,000 3rd Quarter 24,000 4th Quarter 23,000 In addition, 27,500 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 $8,200. Each unit requires 5 grams of raw material that costs $1.40 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 7,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.40 direct labor-hours and direct laborers are paid $13.50 per hour. Required: 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. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 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. 1st Quarter 113,750 $ 159,250 2nd Quarter 1 23,750 $ 173,250 3rd Quarter 118,750 $ 166,250 4th Quarter 93,250 $ 130,550 Estimated grams of raw material to be purchased Cost of raw materials to be purchased Year 4 49,500 $ 629,300

Answer 1

* The production department of zen s Reg. I 1st 2nd 3D sth OTR OR OTR OTR Required production in units 22000 25000 34000 23000 unit of Raw mat per unit TOTCH Raw material for production , 10,000 125000 120,000 1,15000 Add: Desized units of raw material 31250 30,000 28750 7000 Total Onits Needeo 141250 155000 148750 122000 Less units of Beginning inventory (27500) (31250) 30,000) (28750) units of material to be purchased 1,13750 123750 1187.50 93250 Pes unit cost of raw materiaal X 1.40 1.40 1.40 1.40 costOFROW material puzchase s 159250 173250 1662501130550 -) (303+ 9 est 2nd ed 4th 110,000 25000 120,000 115000 25% 25% 25% 25% 27500 1 31250 130,000 128750