Question
Zira Co. reports the following production budget for the next four months. April May June July Production (units) 656 710 688 668 Each finished unit
Zira Co. reports the following production budget for the next four months. April May June July Production (units) 656 710 688 668 Each finished unit requires six 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 1,574 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 656 May 710 June 688 units 6 lbs. 4.128 lbs. 6 6 3,936 4.260 Budgeted production (units) Materials requirements per unit Materials needed for production (lbs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Beginning inventory (lbs.) Materials to be purchased (lbs.) Cost per lb. Total budgeted direct materials cost 4,033 lbs. $ 20,165 $ 21,100 $ 20,460Step by Step Solution
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