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	10,000	13,000	12,000	11,000

In addition, 20,000 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 $5,800.

Each unit requires 8 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 quarters 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 $11.50 per hour.

Required:

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

1-b.

Prepare a schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year.

Zan Corporation Schedule of Expected Cash Disbursements for Materials 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Year Beginning accounts payable $0 1st Quarter purchases 0 2nd Quarter purchases 0 3rd Quarter purchases 0 4th Quarter purchases 0 Total cash disbursements for materials $0 $0 $0 $0 $0 2. Prepare the companys direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Round "Direct labor-hours per unit" and "Direct labor cost per hour" answers to 2 decimal places.) Zan Corporation Direct Labor Budget 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Year Required production in units Direct labor-hours per unit Total direct labor-hours needed Direct labor cost per hour Total direct labor cost