Question

Mailings Review View Add-ins Help Tell me what you want to do .E . A A .A 21 . Аавьсера | Аавьсера АаВЫС Аавьссс Аав аавьс Normal T No Spac... Heading 1 Heading 2 Title Subtitl - - Paragraph The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year. 2nd Quarter 8,000 Quarter 5,000 3rd Quarter 7.000 4th Quarter 6,000 Units to be produced In addition, 6.000 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 $2,880. Each unit requires 8 grams of raw material that costs $1.20 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 8.000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid $11.50 per hour. Required: 1.82. 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 Ctrl)

Answer 1

					Zan Corporation
					Direct Materials Budget
					1st	2nd	3rd	4th	Year
					Qtr	Qtr	Qtr	Qtr
Required production in units of finished goods					5,000	8,000	7,000	6,000	26,000
unit of raw materials needed per unit of finished					8	8	8	8	8
units of raw materials needed to meet prodcution					40000	64000	56000	48000	208000
Add:Desired units of ending raw materials inventory					16000	14000	12000	8,000	8,000
total units of raw materials needed					56000	78000	68000	56000	216000
less:units of beginning raw materials inventory					6,000	16000	14000	12000	6,000
units of raw materials to be purchased					50,000	62000	54000	44000	210,000
units cost of raw materials					1.2	1.2	1.2	1.2	1.2
Cost of raw materials to be purchased					60000	74400	64800	52800	252000
Estimated grams of raw material to be purchased					50,000	62000	54000	44000	210,000
cost of raw materials to be prucased					60000	74400	64800	52800	252000
	total cash disbursement for materails
					1st	2nd	3rd	4th	Year
					Qtr	Qtr	Qtr	Qtr
	Accounts payable				2,880				2,880
	first (60,000*60%;40%)				36000	24000			60000
	second (74400*60%;40%)					44640	29760		74400
	third (64800*60%;40%)						38880	25920	64800
	foruth (52800*60%)							31680	31680
	total cash disbursement for materials				38,880	68640	68640	57600	233,760	answer
	total direct labor cost
					1st	2nd	3rd	4th	Year
					Qtr	Qtr	Qtr	Qtr
	units produced				5,000	8,000	7,000	6,000	26,000
	direct labor hours per unit required				0.2	0.2	0.2	0.2	0.2
	total direct labor hours required				1000	1600	1400	1200	5200
	cost per direct labor hour				11.5	11.5	11.5	11.5	11.5
	total direct labor cost				11500	18400	16100	13800	59800	answer