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 30% of next month's production needs. Beginning direct materials inventory for April was 996 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 664 705 697 677 ZIRA COMPANY Direct Materials Budget April May June Units to produce 664 705 697 units Materials required per unit 5 5 5 pounds Materials needed for production (pounds) 3,320 3,525 3,485 pounds Add: Desired ending materials inventory (pounds) 1,058 1,046 1,016 pounds Total materials required (pounds) 4,378 4,571 4,501 pounds Less: Beginning materials inventory (pounds) 996 pounds Materials to purchase (pounds) 3,382 pounds Materials cost per pound 5 $ $ 5 per pound EA Cost of direct materials purchases 16,910 $ 0 $