Exercise 07-4 Manufacturing: Direct materials budget LO P1 Zira Co. reports the following production budget for the next four months. April 612 Production (units) May 640 June 646 July 626 Each finished unit requires five pounds of raw materials and the company wants to end each month with raw materials Inventory equal to 30% of next month's production needs. Beginning raw materials Inventory for April was 918 pounds. Assume direct materials cost $4 per pound. Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) units Answer is complete but not entirely correct. ZIRA CO. Direct Materials Budget For April, May, and June April May June Budgeted production (units) 812 640 846 Materials requirements per unit 5 5 5 Materials needed for production (lbs.) 3.080 3,200 Budgeted ending inventory (lbs.) 960 969 939 Total materials requirements (lbs.) 4,020 4,169 4,160 Beginning inventory (lbs.) 918 960 969 Materials to be purchased (lbs.) 3,102 3,209 3,200 Cost per lb. IS 4 IS s Total budgeted direct materials cost IS 15.510 XS 16,045 X $ 16.000 X lbs. 3.230 lbs. lbs. OOOOO lbs. DO lbs. Olololo lbs. 4 4 per lb