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Zira Co. reports the following production budget for the next four months. April 566 May 620 Production (units) June 598 July 578 Each finished unit
Zira Co. reports the following production budget for the next four months. April 566 May 620 Production (units) June 598 July 578 Each finished unit requires four 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 453 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 May 566 June 620 598 units 4 4 4 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
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