answer all parts correctly with all work in text form The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for theupcoming fiscal year:1st Quarter14,000Units to be producedIn addition, 24,500 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable forthe 1st Quarter is $6,600.Req 1 and 2Each unit requires 7 grams of raw material that costs $1.40 per gram. Management desires to end each quarter with an inventory ofraw materials equal to 25% of the following quarter's production needs. The desired ending inventory for the 4th Quarter is 7,000grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unitrequires 0.40 direct labor-hours and direct laborers are paid $15.50 per hour.Req 32nd Quarter17,000Required:1. and 2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for eachquarter 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 43rd Quarter.16,000Estimated grams of raw material to be purchasedCost of raw materials to be purchased4th Quarter15,000Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for theyear as a whole.$1st Quarter103,2501 $2nd Quarter 3rd Quarter117,250110.2501 S$4th Quarter85,750$Year416,500

Budgeting is a method of estimating expected future outcomes based on past events. Budgeting…

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 14,000 Units to be produced 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. Req 1 and 2 2nd Quarter 17,000 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. Req 3 Complete this question by entering your answers in the tabs below. 3rd Quarter 4th Quarter 16,000 15,000 Req 4 Estimated grams of raw material to be purchased Cost of raw materials to be purchased 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 103,250 S 2nd Quarter 3rd Quarter 4th Quarter 110.250 117.250 85,750 1 S 1 $ Year 416,500

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...