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Zan Corporation's production budget for next year contains the following estimates:

Units to be produced

$1st$ Quarter $2nd$ Quarter $3rd$ Quarter $4th$ Quarter

$16,000,19,000,18,000,17,000$

In addition, $16,000$ 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 $$7,000.$

Each unit requires $4$ grams of raw materials that cost $$1\mathrm{.}80$ 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 $4$ th Quarter is $5,000$

grams. Management plans to pay for $60\%$ of raw materials purchases in the quarter acquired and $40\%$ in the following quarter. Each

unit requires $0\mathrm{.}40$ direct labor$-$hour and direct laborers are paid $$12\mathrm{.}50$ per hour.

Required:

and $2.$ Calculate the estimated grams of raw materials that need to be purchased and the cost of raw material purchases for each

quarter and for the year as a whole.

Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.

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.

Required $1$

Required $3$

Required $4$

Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.

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