Zan Corporation's production budget for next year contains the following estimates: In addition, 11,000 grams...

70.2K

Verified Solution

Question

Accounting

image
image
image
Zan Corporation's production budget for next year contains the following estimates: In addition, 11,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the ist Quarter is $6,000 Each unit requires 4 grams of raw materials that cost $1.60 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 6,000 grams Management plans to pay for 60% of raw materials purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hour and direct laborers are paid $12.50 per hour. Required: 1 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. 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. Complete this question by entering your answers in the tabs below. Calculate the entimated 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. Complete this question by entering your answers in the tabs below. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole. Complete this question by entering your answers in the tabs below. Calculate the estimated direct labor cost for each quarter and for the year as a whole

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students