Exercise 20-8 (Algo) Manufacturing: Direct materials budget LO P1 Zira Company reports the following production budget for the next four months. Each finished unit requires five pounds of direct materials, and the company wants to end each month with direct materials inventory equal to 40% of next month's production needs. Beginning direct materials inventory for April was 1,424 pounds. Direct materials cost $5 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) April May June July Units to produce 712 740 746 726 ZIRA COMPANY Direct Materials Budget April May June Units to produce 712 746 units Materials required per unit 5 pounds 3,730 pounds Materials needed for production (pounds) pounds Add: Desired ending materials inventory (pounds) 3,730 pounds Total materials required (pounds) Less: Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases $ $ 5 3,560 1,480 5,040 5 $ 0 $ 740 5 3,700 1,492 5,192 5 $ 0 $ J 5 per pound 0