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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)	566		620		598		578

Each finished unit requires five pounds of raw materials and the company wants to end each month with raw materials inventory equal to 40% of next months production needs. Beginning raw materials inventory for April was 1,132 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.)