Question attached in image. The production department of Priston Company has sub

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Question attached in image.

The production department of Priston Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year. In addition, the beginning raw materials inventory for the 1st Quarter is budgeted to be 2,400 pounds and the beginning accounts payable for the 1st Quarter is budgeted to be S15,200. Each unit requires two pounds of raw material that costs $4.00 per pound. Management desires to end each quarter with a raw materials inventory equal to 15% of the following quarter's production needs. The desired ending inventory for the 4th Quarter is 5,250 pounds. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.5 direct labor-hours and direct labor-hour workers are paid $12 per hour. Required: Prepare the company's direct materials budget for the upcoming fiscal year. (Do not round Intermediate calculations. Input all amounts as positive values. Omit the sign "$" your response.) Prepare a schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year. (Do not round Intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Compete the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Do not round intermediate calculations. Omit the "$" sign in your response.)

Explanation / Answer

1a) 1st quarter 2nd quarter 3rd quarter 4th quarter year Production need - pound 16000 18000 20000 14000 68000 Add: Ending Inventory 2700 3000 2100 5250 5250 Total needs - pounds 18700 21000 22100 19250 73250 Deduct: Beginning Inventory 2400 2700 3000 2100 2400 Raw material to be purchased - Pounds 16300 18300 19100 17150 70850 Cost of raw material to be purchased $      65,200.00 $ 73,200.00 $ 76,400.00 $ 68,600.00 $ 283,400.00 1b) 1st quarter 2nd quarter 3rd quarter 4th quarter year Accounts Payable, beginning balance $      15,200.00 $    15,200.00 1st quarter purchase $      39,120.00 $ 26,080.00 $                 -   $                 -   $    65,200.00 2nd quarter purchase $                     -   $ 43,920.00 $ 29,280.00 $                 -   $    73,200.00 3rd quarter purchase $                     -   $                 -   $ 45,840.00 $ 30,560.00 $    76,400.00 4th quarter purchase $                     -   $                 -   $                 -   $ 41,160.00 $    41,160.00 Total cash disbursments for material $      54,320.00 $ 70,000.00 $ 75,120.00 $ 71,720.00 $ 271,160.00 1c) 1st quarter 2nd quarter 3rd quarter 4th quarter year Total Direct labor-hours needed 4000 4500 5000 3500 17000 Total Direct labor cost 48000 54000 60000 42000 204000

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