The production department of zan corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st quarter 2nd quarter 3rd quarter 4th quarterunits to be produced 9,000 12,000 11,000 10,000in addition, 15,750 grams of raw materials inventory is on hand at the start of the 1st quarter and the beginning accounts payable for the 1st quarter is $5,600.each unit requires 7 grams of raw material that costs $1.20 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 4th quarter is 8,000 grams. management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. each unit requires 0.20 direct labor-hours and direct laborers are paid $15.50 per hour. required: 1.& 2. calculate the estimated grams of raw material 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. assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced.

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.