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Zira Co. reports the following production budget for the next four months. April 572 Production (units) May 600 June 606 July 586 Each finished unit
Zira Co. reports the following production budget for the next four months. April 572 Production (units) May 600 June 606 July 586 Each finished unit requires six pounds of raw materials and the company wants to end each month with raw materials inventory equal to 20% of next month's production needs. Beginning raw materials inventory for April was 686 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 572 May June 600 5 5 606 units 5 lbs. 3,030 lbs. 2,860 600 3,000 606 586 lbs. 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 3,616 lbs. 3,460 (572) 2,888 3,606 (600) 3,006 (606) lbs. 3,010 lbs. $ 6 6 $ $ $ 6 per lb. 18,060 $ 17,328 18,036 $
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