| 1-a. | Prepare the companys direct materials budget for the upcoming fiscal year. (Round "Unit cost of raw materials" answers to 2 decimal places.) | | | | | Zan Corporation | | Direct Materials Budget | | | 1st | 2nd | 3rd | 4th | | | | Quarter | Quarter | Quarter | Quarter | Year | | Required production in units of finished goods | 10,000 | 13,000 | 12,000 | 11,000 | 46,000 | | Units of raw materials needed per unit of finished goods | 8 | 8 | 8 | 8 | 8 | | Units of raw materials needed to meet production | 80,000 | 104,000 | 96,000 | 88,000 | 368,000 | | Add: Desired units of ending raw materials inventory | 26,000 | 24,000 | 22,000 | 7,000 | 7,000 | | Total units of raw materials needed | 106,000 | 128,000 | 118,000 | 95,000 | 375,000 | | Less: Units of beginning raw materials inventory | | | | | | | Units of raw materials to be purchased | 106,000 | 128,000 | 118,000 | 95,000 | 375,000 | | Unit cost of raw materials | $1.40 | $1.40 | $1.40 | $1.40 | $1.40 | | Cost of raw materials to be purchased | $148,400 | $179,200 | $165,200 | $133,000 | $525,000 | | |
