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Zira Co. reports the following production budget for the next four months. April 694 Production (units) May 735 June 727 July 707 Each finished unit
Zira Co. reports the following production budget for the next four months. April 694 Production (units) May 735 June 727 July 707 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 month's production needs. Beginning raw materials inventory for April was 1,666 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.) May June 735 727 units ZIRA CO. Direct Materials Budget For April, May, and June April 694 6 4,164 882 5,046 833 per unit 6 6 lbs Budgeted production (units) mm Materials requirements .................................................... Materials needed for production (lbs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Beginning inventory (lbs.) 4.410 872 5,282 4.362 lbs. 848 lbs. 5,210 lbs. 872 lbs. 882
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