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Zira Co. reports the following production budget for the next four months. April May June July Production (units) 626 680 658 638 Each finished unit
Zira Co. reports the following production budget for the next four months.
April | May | June | July | |||||
Production (units) | 626 | 680 | 658 | 638 | ||||
Each finished unit requires four pounds of raw materials and the company wants to end each month with raw materials inventory equal to 20% of next months production needs. Beginning raw materials inventory for April was 501 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.)
ZIRA CO. | ||||
Direct Materials Budget | ||||
For April, May, and June | ||||
April | May | June | ||
Budgeted production (units) | 626 | 680 | 658 | units |
Materials requirements per unit | 4 | 4 | 4 | lbs. |
Materials needed for production (lbs.) | 2,504 | 2,720 | 2,632 | lbs. |
Budgeted ending inventory (lbs.) | ||||
Total materials requirements (lbs.) | ||||
Beginning inventory (lbs.) | ||||
Materials to be purchased (lbs.) | ||||
Cost per lb. | $4 | per lb. | ||
Total budgeted direct materials cost |
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