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Zira Co. reports the following production budget for the next four months. April May June July Production (units) 664 705 697 677 Each finished unit
Zira Co. reports the following production budget for the next four months.
April | May | June | July | |||||
Production (units) | 664 | 705 | 697 | 677 | ||||
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 months production needs. Beginning raw materials inventory for April was 996 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.)
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