Reference no: EM132546132

The 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.

Question 1: Prepare the company's direct materials budget.

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