The production department of Zan Corporation has submitted thefollowing forecast of units to be produced by quarter for theupcoming fiscal year:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter |
| Units to be produced | 9,000 | 12,000 | 11,000 | 10,000 |
|
In addition, 15,750 grams of raw materials inventory is on handat the start of the 1st Quarter and the beginning accounts payablefor the 1st Quarter is $5,600.
Each unit requires 7 grams of raw material that costs $1.20 pergram. Management desires to end each quarter with an inventory ofraw materials equal to 25% of the following quarter’s productionneeds. The desired ending inventory for the 4th Quarter is 8,000grams. Management plans to pay for 60% of raw material purchases inthe quarter acquired and 40% in the following quarter. Each unitrequires 0.20 direct labor-hours and direct laborers are paid$15.50 per hour.
Required:
1-a. Prepare the company’s direct materials budget for theupcoming fiscal year. (Round "Unit cost of raw materials"answers to 2 decimal places.) Please also insert the year columnafter Quarter 4
| Required production in units of finished goods | Quarter 1 | Quarter 2 | Quarter 3 | Quarter4 |
| Units of Raw Materials Needed to meet production | | | | |
| Units of Raw Materials needed per unit finished goods | | | | |
| Add desired Units of ending raw material | | | | |
| Total Units of raw material needed | | | | |
| ? | | | | |
| Units of raw material to be purchased | | | | |
| Unit cost of raw material | | | | |
| Cost of raw material to be purchased | | | | |
| | | | |
| | | | |
| | | | |
*The chart ends after cost of raw materials to be purchased*
1-b. Prepare a schedule of expected cash disbursements forpurchases of materials for the upcoming fiscal year.
| Beg. Balance Account Payable | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year | |
| 1st Quarter Purchases | | | | | | |
| 2nd Quarter Purchases | | | | | | |
| 3rd Quarter Purchases | | | | | | |
| 4th Quarter Purchases | | | | | | |
| Total cash disbursement | | | | | | |
2. Prepare the company’s direct labor budget for the upcomingfiscal year, assuming that the direct labor workforce is adjustedeach quarter to match the number of hours required to produce theforecasted number of units produced. (Round "Directlabor-hours per unit" and "Direct labor cost per hour" answers to 2decimal places.) Please also add the year column next toit. Thank you!
| Required Production in units | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 |
| Direct Labor Hours per unit | | | | |
| Total Direct Labor cost per hour | | | | |
| Direct Labor Cost per hour | | | | |
| Total Direct Labor Cost | | | | |
