The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year In addition, 6,000 grams of raw materials inventory is on hand at the start of the 1st quarter and the be ginning accounts payable for the 1st quarter is...

1 Zan Corporation Direct Materials Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Requi ...

The production department of Zan Corporation has submitted the following forecast of units to be produced by

Question:

The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

1st Quarter 2nd Зrd 4th Quarter Quarter Quarter Units to be produced... 5,000 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 be-ginning 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 S 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.

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.

Ending Inventory
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Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Corporation
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