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Zira Company reports the following production budget for the next four months. Each finished unit requires six pounds of direct materials, and the company
Zira Company reports the following production budget for the next four months. Each finished unit requires six 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 1,105 pounds. Direct materials cost $4 per pound Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) Units to produce Units to produce April May 614 655 June 647 July 627 Materials required per unit Materials needed for production (pounds) Add: Desired ending materials inventory (pounds) Total materials required (pounds) Less: Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases ZIRA COMPANY Direct Materials Budget April May June 614 055 647 units + 0 0 0 0 0 $ 0 $ 0 $ 0
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