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Zira Company reports the following production budget for the next four months. Each finished unit requires four pounds of direct materials, and the company
Zira Company reports the following production budget for the next four months. Each finished unit requires four pounds of direct materials, and the company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 641 pounds. Direct materials cost $4 per pound. Prepare a direct materials budget for April, May, and June. Note: Round your answers to the nearest whole number. Units to produce April May 534 575 June July 567 547 ZIRA COMPANY Direct Materials Budget April May June Units to produce Materials required per unit 534 575 567 units 4 4 Materials needed for production (pounds) 2,136 Add: Desired ending materials inventory (pounds) 641 Total materials required (pounds) Less: Beginning materials inventory (pounds) 2,777 641 2,990 2,300 690 4 pounds 2,268 pounds 680 pounds 2,948 pounds pounds Materials to purchase (pounds) Cost of direct materials purchases $ 0 $ 0 $ 0
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