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 5,000 2nd 3rd 4th Quarter Quarter Quarter 8,000 7,000 6,000 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 labour-hours and direct labourers are paid $11.50 per hour. Required: 1. Prepare the company's direct materials purchases budget and schedule of expected cash disbursements for materials for the upcoming fiscal year. Required production in units of finished goods Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to be purchased Zan Corporation Direct Materials Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Schedule of Expected Cash Disbursements for Materials 0 0 0 Beginning accounts payable 1st Quarter purchases 2nd Quarter purchases 3rd Quarter purchases 4th Quarter purchases Total cash disbursements for materials $ 0 $ 0 $ 0 $ 0 $ 0 2. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecast number of units produced. Required production in units Direct labor-hours per unit Total direct labor-hours needed Direct labor cost per hour Total direct labor cost Zan Corporation Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year 0 0 0 0 0 $ 0 0 0 $ 0 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 5,000 2nd 3rd 4th Quarter Quarter Quarter 8,000 7,000 6,000 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 labour-hours and direct labourers are paid $11.50 per hour. Required: 1. Prepare the company's direct materials purchases budget and schedule of expected cash disbursements for materials for the upcoming fiscal year. Required production in units of finished goods Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to be purchased Zan Corporation Direct Materials Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Schedule of Expected Cash Disbursements for Materials 0 0 0 Beginning accounts payable 1st Quarter purchases 2nd Quarter purchases 3rd Quarter purchases 4th Quarter purchases Total cash disbursements for materials $ 0 $ 0 $ 0 $ 0 $ 0 2. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecast number of units produced. Required production in units Direct labor-hours per unit Total direct labor-hours needed Direct labor cost per hour Total direct labor cost Zan Corporation Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year 0 0 0 0 0 $ 0 0 0 $ 0
Expert 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
-
A solid conducting cylinder of radius 0.1 m and mass of 4 kg rests on horizontal conducting rails (Figure). The rails, separated by a distance a?= 0.4 m, have a rough surface so the cylinder rolls...
-
Calculate the coefficient of performance of the R-134a refrigerator given in Example 6.10.
-
Draw a block diagram for the following equation. The output is X(s) the inputs are F(s) and G(s). 5x + 3 x + 7x = 10/(0 4g(f)
-
Cite and discuss examples of a close under each of: summarise and ask for order, alternative choice, concession close, objection close.
-
Seymour Clothing Co. manufactures a variety of clothing types for distribution to several major retail chains. The following costs are incurred in the production and sale of blue jeans: a. Shipping...
-
You are asked to compare two different ways of parallelizing the SAXPY loop using the pthread library. SAXPY is a function within the standard Basic Linear Algebra Subroutines (BLAS) library and...
-
3. The key to description is A. considering only what you think the reader already knows. OB. showing only the steps you consider important. OC. telling the reader how you would do something. O D....
-
A long, straight wire carrying a current of 5 A flowing from left to right is placed above a large, flat sheet through which the current per unit width is \(6.0 \mathrm{~A} / \mathrm{m}\) flows from...
-
A long, straight, current-carrying wire carries a current of magnitude \(3 \mathrm{~A}\). Calculate the magnitude of the magnetic field at a location \(35 \mathrm{~mm}\) away from the wire.
-
An incompressible fluid flows in a two-dimensional space. It has the following velocity component. \[v_{x}=x^{2} y+2 x y\] a. Determine an expression for \(v_{y}\). b. Is the flow irrotational? c....
-
A thin slab of metal is formed in the shape of a square. The \(x-y\) vertices of the square are \((0,0),(1,0),(0,1)\), and \((1,1)\). The faces of the slab in the \(z\)-direction are insulated so...
-
While on vacation in the Middle East, entrepreneur Lisa Mendelson witnessed a group of American tourists sampling halvah at an outdoor marketplace. The experience immediately brought back childhood...
-
Assume that a certain nursing home has two categories of payers. Medicaid pays $60.00 per day and private pay patients pay the established per diem, but approximately 10 percent of private pay...
-
Find an equation of the given line. Slope is -2; x-intercept is -2
-
What is the pressure drop associated with water at \(27^{\circ} \mathrm{C}\) flowing with a mean velocity of \(0.1 \mathrm{~m} / \mathrm{s}\) through an \(800-\mathrm{m}-\) long cast iron pipe of...
-
Fully developed conditions are known to exist for water flowing through a \(50-\mathrm{mm}\)-diameter tube at \(0.02 \mathrm{~kg} / \mathrm{s}\) and \(27^{\circ} \mathrm{C}\). What is the maximum...
-
Water at \(35^{\circ} \mathrm{C}\) is pumped through a horizontal, \(200-\mathrm{m}\)-long, \(30-\mathrm{mm}\)-diameter tube at \(0.25 \mathrm{~kg} / \mathrm{s}\). Over time, a 2-mm-thick layer of...
Study smarter with the SolutionInn App