Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Zira Co. reports the following production budget for the next four months. April May June July Production (units) 534 575 567 547 Each finished unit

Zira Co. reports the following production budget for the next four months.

April May June July
Production (units) 534 575 567 547

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 months production needs. Beginning raw materials inventory for April was 961 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
Budgeted production (units) 534 575 567 units
Materials requirements per unit 6 6 6 lbs.
Materials needed for production (lbs.) 3,204 3,450 3,402 lbs.
Budgeted ending inventory (lbs.)
Total materials requirements (lbs.)
Beginning inventory (lbs.) 961 lbs.
Materials to be purchased (lbs.)
Cost per lb. $4 $4 $4 per lb.
Total budgeted direct materials cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting Information For Decisions

Authors: John Wild, Ken Shaw, Barbara Chiappetta

7th Edition

1259726703, 9781259726705

More Books

Students also viewed these Accounting questions