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Exercise 20-4 Manufacturing: Direct materials budget LO P1 Zira Co. reports the following production budget for the next four months. Production (units) APRIL 572 MAY
Exercise 20-4 Manufacturing: Direct materials budget LO P1
Zira Co. reports the following production budget for the next four months.
Production (units) | APRIL 572 | MAY 600 | JUNE 606 | JULY 586 | ||||
Each finished unit requires six 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 1,030 pounds. Assume direct materials cost $3 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.) |
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