The production department of Zan Corporation has submitted the following forecast of units to be...
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Accounting
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: st Quarter nd Quarter rd Quarter th Quarter Units to be produced In addition, grams of raw materials inventory is on hand at the start of the st Quarter and the beginning accounts payable for the st Quarter is $ Each unit requires grams of raw material that costs $ per gram. Management desires to end each quarter with an inventory of raw materials equal to of the following quarters production needs. The desired ending inventory for the th Quarter is grams. Management plans to pay for of raw material purchases in the quarter acquired and in the following quarter. Each unit requires direct laborhours and direct laborers are paid $ per hour. Required: and 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. 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.
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
st Quarter nd Quarter rd Quarter th Quarter
Units to be produced
In addition, grams of raw materials inventory is on hand at the start of the st Quarter and the beginning accounts payable for the st Quarter is $
Each unit requires grams of raw material that costs $ per gram. Management desires to end each quarter with an inventory of raw materials equal to of the following quarters production needs. The desired ending inventory for the th Quarter is grams. Management plans to pay for of raw material purchases in the quarter acquired and in the following quarter. Each unit requires direct laborhours and direct laborers are paid $ per hour.
Required:
and 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.
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.
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