Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Zira Co. reports the following production buaget for the next four months. Production (units) April 534 May 575 June 567 July 547 Each finished unit
Zira Co. reports the following production buaget for the next four months. Production (units) April 534 May 575 June 567 July 547 Each finished unit requires five pounds of raw materials and the company wants to end each month with raw materials inventory equal to 20% of next month's production needs. Beginning raw materials inventory for April was 534 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.) ZIRA CO. Direct Materials Budget For April, May, and June April May June Budgeted production (units) 534 575 567 units Materials requirements per unit Materials needed for production (lbs.) 5 5 5 lbs. 2,670 2,875 2,835 lbs. Budgeted ending inventory (lbs.) 575 567 lbs. Total materials requirements (lbs.) 3,245 3,442 lbs. Beginning inventory (lbs.) Materials to be purchased (lbs.) Cost per lb. $ $ 4 per lb. Total budgeted direct materials cost
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started