https html 8 Graded Exercises Help SaveExit Sove The product

https:/ html 8 Graded Exercises Help Save&Exit; Sove 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 Quarter 3rd Quarter 4th Quarter Units to be produced 17,000 20,000 19,000 18,000 In addition, 21,250 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 $7,200. s Each unit requires 5 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 labor-hours and direct laborers are paid $13.50 per hour Required 1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quart 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. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4

Solution

1 1st 2nd 3rd 4th Year Units to be produced 17000 20000 19000 18000 74000 Raw Material Required 85000 100000 95000 90000 370000 Closing Balance 25000 23750 22500 8000 8000 LESS : Opening Balance -21250 -25000 -23750 -22500 -21250 RM needs to be purchased 88750 98750 93750 75500 356750 Cost of Raw Material $ 1,06,500.00 $ 1,18,500.00 $ 1,12,500.00 $ 90,600.00 $    4,28,100.00 2 1st 2nd 3rd 4th Year Cost of Raw Material $ 1,06,500.00 $ 1,18,500.00 $ 1,12,500.00 $ 90,600.00 $    4,28,100.00 Payment in Qtr Purchased $     63,900.00 $     71,100.00 $     67,500.00 $ 54,360.00 $    2,56,860.00 Payment in other Qtr $       7,200.00 $     42,600.00 $     47,400.00 $ 45,000.00 $    1,42,200.00 Total Payment         71,100.00      1,13,700.00      1,14,900.00      99,360.00        3,99,060.00 3 1st 2nd 3rd 4th Year Units to be produced 17000 20000 19000 18000 74000 Labour Hours Required 3400 4000 3800 3600 14800 Labour Cost $     45,900.00 $     54,000.00 $     51,300.00 $ 48,600.00 $    1,99,800.00