#16

A company budgets production of 4,860 units in May and 6,200 units in June. Each unit requires 4 pounds of direct materials. Direct materials cost $5 per pound. The company maintains direct materials inventory equal to 40% of next month's direct materials requirement. The company has 7,776 pounds of direct materials inventory on April 30. Prepare the direct materials budget for May. Direct Materials Budget May Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases