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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 wants
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 979 pounds. Direct materials cost $5 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) Units to produce April May June 544 585 July 577 557 ZIRA COMPANY Direct Materials Budget April May June 544 585 577 units Units to produce Materials required per unit Materials needed for production (pounds) 6 6 3,264 3,510 6 pounds 3,462 pounds Add: Desired ending materials inventory (pounds). Total materials required (pounds) 3,264 3,510 3,462 pounds Less: Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases $ 0 $ 0 $ 0
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