The production department of Zan Corporation has submitted the following forecast of units to be produced...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 14,000 2nd Quarter 17,000 3rd Quarter 16,000 4th Quarter 15,000 In addition, 24,500 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 $6,600. Each unit requires 7 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 $15.50 per hour. Required: 1. and 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. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 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 Estimated grams of raw material to be purchased Cost of raw materials to be purchased 103,250 2nd Quarter 117,250 3rd Quarter 110,250 4th Quarter 85,750 Year 416,500 $ $ 1 $ 1 $ 1 < Prev 3 of 6 Next > 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 14,000 2nd Quarter 17,000 3rd Quarter 16,000 4th Quarter 15,000 In addition, 24,500 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 $6,600. Each unit requires 7 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 $15.50 per hour. Required: 1. and 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. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 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 Estimated grams of raw material to be purchased Cost of raw materials to be purchased 103,250 2nd Quarter 117,250 3rd Quarter 110,250 4th Quarter 85,750 Year 416,500 $ $ 1 $ 1 $ 1 < Prev 3 of 6 Next >
Expert Answer:
Answer rating: 100% (QA)
Req 1 and 2 Estimated grams of raw material to be purchased and cost of raw material purchases 1 Cal... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
SQL, Structured Query Language, is a language used by software developers, data scientists, and anyone who works with data. There are various database management systems (DBMS) that support SQL, but...
-
A flat and infinitely large sheet with uniform charge density moves with constant speed in a direction parallel to its surface. Confirm the differential form of Poyntings theorem at every point not...
-
Find the least common denominator (LCD) for these fractions. 7/8, 1/20, 13/16
-
Barlow Company manufactures three products-A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: Selling price Variable expenses: Direct...
-
Water flows at a rate of 10 gallons per minute in a new horizontal 0.75-in.-diameter galvanized iron pipe. Determine the pressure gradient, \(\Delta p / \ell\), along the pipe.
-
At the time of her death on September 4, 2015, Alicia held the following assets. Alicia was also the life tenant of a trust (fair market value of $2 million) created by her late husband Bert. (The...
-
DISCUSS WITH EXAMPLES METHODS OF FINANCING A NEW ENTERPRISE AND THE FACTORS TO CONSIDER WHEN FINANCING A BUSINESS.
-
HR Competencies & Applications Setting up an Alternative Dispute Resolution Process Creating an internal process to settle employment-related disputes and conflicts can benefit both the organization...
-
Cindy needs $5,400 in 2 years. How much should Cindy invest today if she invested into an account that yields 3.5% interest compounded quarterly?
-
Zawetere Limited, in Siteki is a manufacturing company and is in the process of preparing its budget for the upcoming production period. The following data relate to the company for the year ended 30...
-
Please list ten assessment methods and indicate how each connects with Gardner's Multiple Intelligence theory. There is eight intelligence outlined in the MI theory: 1. Linguistic intelligence 2....
-
You need to build a 32-bit combinational unsigned multiplier using 1-bit 2-input NAND gates only. Assume 4 1-bit 2-input NAND gates are needed to build a XOR gate and you are using ripple carry...
-
(a) In Simulated Annealing, if T2 > T1, is the probability of adopting a new worse state higher in T2 or in T1? Why? (No marks will be given for absent or incorrect explanations.) [5] (b) Does the...
-
Write a response in which you compare and contrast which of the three components is most often neglected by a company and explain why. 1. Chose the honest company founded by Jessica Alba, the honest...
-
Rewrite the code of Figure 7.3 in Ada, Java, or C#. Figure 7.3: template class queue { item items [max_items]; int next_free, next_full, num_items; public: queue () : next_free (0), next_full(0),...
-
Suppose Caterpillar, Inc., has 653 million shares outstanding with a share price of $75.14, and $25.99 billion in debt. If in three years, Caterpillar has 710 million shares outstanding trading for...
-
How do you use a decision tree to make the best investment decision?
-
Suppose Goodyear Tire and Rubber Company has an equity cost of capital of 9%, a debt cost of capital of 7.5%, a marginal corporate tax rate of 45%, and a debt-equity ratio of 2.7. Suppose Goodyear...
Study smarter with the SolutionInn App