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ZIRA CO. Direct Materials Budget For April, May, and June April May June Budgeted production (units) 694 735 727 units Materials requirements per unit 4
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Zira Co. reports the following production budget for the next four months.
April | May | June | July | |||||
Production (units) | 694 | 735 | 727 | 707 | ||||
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 833 pounds. Assume direct materials cost $4 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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