Exercise 07-4 Manufacturing: Direct materials budget LO P1

Zira Co. reports the following production budget for the next four months.

	April		May		June		July
Production (units)	674		715		707		687

Each finished unit requires four pounds of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next months production needs. Beginning raw materials inventory for April was 809 pounds. Assume direct materials cost $5 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.)

Answer is not complete.

ZIRA CO.
Direct Materials Budget
For April, May, and June
	April	May	June
Budgeted production (units)selected answer correct	674selected answer correct	715selected answer correct	707selected answer correct	units
Materials requirements per unitselected answer correct	4selected answer correct	4	4	lbs.
Materials needed for production (lbs.)	2,696selected answer correct	2,860selected answer correct	2,828selected answer correct	lbs.
Budgeted ending inventory (lbs.)selected answer correct	858selected answer correct	848selected answer correct	824selected answer correct	lbs.
Total materials requirements (lbs.)	3,554selected answer correct	3,708selected answer correct	3,652selected answer correct	lbs.
Beginning inventory (lbs.)selected answer correct	809selected answer correct	2,850selected answer incorrect	2,804selected answer incorrect	lbs.
Materials to be purchased (lbs.)	2,745selected answer correct	not attempted	not attempted	lbs.
Cost per lb.selected answer correct	$5selected answer correct	$5selected answer correct	$5selected answer correct	per lb.
Total budgeted direct materials cost	$13,725selected answer correct	not attempted	not attempted