Question

Hello, I have a cost accounting question. I think I have part 1 correct but am...

Hello, I have a cost accounting question. I think I have part 1 correct but am struggling with 2a and b

 he marketing department of Gaeber Industries has submitted the following sales forecast for the upcoming fiscal year:

 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted sales (units) 8,100 7,100 5,900 7,100
 The company expects to start the first quarter with 1,620 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,890 units. In addition, the beginning raw materials inventory for the first quarter is budgeted to be 5,020 kilograms and the beginning accounts payable for the first quarter are budgeted to be \$16,720. Each unit requires two kilograms of raw material that costs \$8 per kilogram. Management desires to end each quarter with an inventory of raw materials equal to 20% of the following quarter’s production needs. The desired ending inventory for the fourth quarter is 3,330 kilograms. Management plans to pay for 65% of raw material purchases in the quarter acquired and 35% in the following quarter.

 Required: 1. Prepare the company's production budget for the upcoming fiscal year.
 GAEBER INDUSTRIES Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted sales (units) 8,100 7,100 5,900 7,100 28,200 Add: Desired ending inventory 1,420 1,180 1,420 1,890 1,890 Total units needed 9,520 8,280 7,320 8,990 30,090 Deduct: Beginning inventory 1,620 1,420 1,180 1,420 1,620 Required production 7,900 6,860 6,140 7,570 28,470
 2-a. Prepare the company's direct materials budget.
 2-a. Prepare the company's direct materials budget.

 2-b. Prepare the schedule of expected cash disbursements for materials for the upcoming fiscal year. (Round your answer to the nearest whole dollar amount.)

 Quarter 1st 2nd 3rd 4th Total Total Production 7900 6860 6140 7570 28,470 Material per unit (Kgs) 2 2 2 2 2 Total Materials Reqd 15,800 13,720 12,280 15,140 56,940 Add: Ending Materials (20% next month) 13720×20% = 2744 2456 3028 3300 3300 18,544 16,176 15,308 18,440 59,940 Less: Begining Inventory 5020 2744 2456 3028 5020 Direct material required 13,524 13,432 12,852 15,412 55,220 Cost per Kg (\$) 8 8 8 8 8 Total Cost (\$) 108,192 107,456 102,816 123,296 441,760
 1st 2nd 3rd 4th Total 65% of current quarter 70324.80 69,846.40 66,830.40 80,142.4 287,144 35% previous quarter 16,720 37,867.20 37,609.60 35,985.60 128,182.40 Total Payment 87044.80 107,713.60 104,440 116,128 415,326.40

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