apter $9$ Connect Assignment

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Problem $9-15$ Direct Materials Purchases and Direct Labour Budgets $[$LO$2]$

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

$\backslash$table$[[$Units to be produced,$1$st$,2$nd$,3$rd$,4$th$],[,$Quarter,Quarter,Quarter,Quarter$]]$

In addition, $6,400$ grams of raw materials inventory is on hand at the start of the $1$st quarter and the beginning accounts payable for the $1$ st quarter is $$3,280.$

Each unit requires $8\mathrm{.}40$ grams of raw material that costs $$1\mathrm{.}40$ per gram. Management desires to end each quarter with an inventory of raw materials equal to $30\%$ of the following quarter's pryduction needs. The desired ending inventory for the $4$ th quarter is $8,400$ grams. Management plans to pay for $50\%$ of raw material purchases in the quarter acquired and $50\%$ in the following quarter. Each unit requires $0\mathrm{.}30$ direct labour$-$hours and direct labourers are paid $$10\mathrm{.}70$ per hour.

Required:

Prepare the company's direct materials purchases budget and schedule of expected cash disbursements for materials for the upcoming fiscal year.