Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Zira Co. reports the following production budget for the next four months. April May June July Production (units) 612 640 646 626 Each finished unit

Zira Co. reports the following production budget for the next four months.

April May June July
Production (units) 612 640 646 626

Each finished unit requires six 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 1,102 pounds. Assume direct materials cost $5 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.)

image text in transcribed

Zira Co. reports the following production budget for the next four months. Production (units) April 612 May 640 June 646 July 626 Each finished unit requires six pounds of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month's production needs. Beginning raw materials inventory for April was 1,102 pounds. Assume direct materials cost $5 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 Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Total budgeted direct materials cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditing For Hospitals

Authors: Seth Allcorn

1st Edition

0894431633, 978-0894431630

More Books

Students also viewed these Accounting questions