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Zira Company reports the following production budget for the next four months. Each finished unit requires five pounds of direct materials, and the company
Zira Company reports the following production budget for the next four months. Each finished unit requires five 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 861 pounds. Direct materials cost $3 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 574 615 June 607 July 587 Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases ZIRA COMPANY Direct Materials Budget April May June 0 0 0 0 0 0 0 0 69 0
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