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Zira Co. reports the following production budget for the next four months. April 654 Production (units) May 695 June 687 July 667 Each finished unit
Zira Co. reports the following production budget for the next four months. April 654 Production (units) May 695 June 687 July 667 Each finished unit requires five 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 1,308 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.) Answer is complete but not entirely correct. ZIRA CO. Direct Materials Budget For April, May, and June April May 654 695 June 687 units 4 x 4 4 Ibs. 2,780 x 2,748 lbs. 2,616 834 x 3,450 X 824 x 800 Budgeted production (units) Materials requirements per unit Materials needed for production (lbs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Beginning inventory (lbs.) Materials to be purchased (lbs.) Cost per lb. Total budgeted direct materials cost lbs. 3,604 X 785 X 834 X 3,548 X lbs. 824 X lbs. 2,724 X lbs. 6 X per lb. 2,665 X 2,770 o $ 6 X $ 6 X $ $ 15,990 X $ 16,620 X $ 16,344 X
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