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Zira Co. reports the following production budget for the next four months. Production (units) April 722 May June 750 756 July 736 Each finished
Zira Co. reports the following production budget for the next four months. Production (units) April 722 May June 750 756 July 736 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 1,300 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 722 750 756 units 4 4 4 lbs. Budgeted production (units) Materials requirements per unit Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Total budgeted direct materials cost 2,888 3,000 3,024 lbs.
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