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Zira Co. reports the following production budget for the next four months. Production (units) April 646 May 700 June 678 July 658 Each finished
Zira Co. reports the following production budget for the next four months. Production (units) April 646 May 700 June 678 July 658 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 1.163 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.) Answer is complete but not entirely correct. ZIRA CO. Direct Materials Budget For April, May, and June April May June Budgeted production (units) 646 700-> 678 units Materials requirements per unit 60 6 6 lbs Materials needed for production (bs) 3,876 4,200 4.068 lbs Budgeted ending Inventory (lbs.) Total materials requirements (lbs) Beginning inventory (lbs) Materials to be purchased (lbs) Cost per lb. 10 700 678 658 lbs 4,576 4,878 4,726 lbs 646 700 678 lbs 3,930 4,178 4,048 bs 40S 40 per lb Total budgeted direct materials cost $ 15,720 S 16.712 S 16.192
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