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Zira Co. reports the following production budget for the next four months. Production (units) April 656 May 710 June 688 July 668 Each finished unit
Zira Co. reports the following production budget for the next four months. Production (units) April 656 May 710 June 688 July 668 Each finished unit requires five 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 984 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. June 688 units Direct Materials Budget For April, May, and June April May 656 710 3 x 3 1,968 X 2.130 X 639 X 619 X 2,607 X 2,749 X 984 639 X 3 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 2,064 X lbs 200 x lbs. 2,264 X lbs. 619 X lbs. 1.645 x lbs. 1.623 x 2.110 X $ 3 $ 3 per lb. 3$ 4,869 X $ $ 6,330 x $ 4,935 X
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