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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 wants
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 1,011 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.) April 674 May 715 June 707 July 687 Units to produce ZIRA COMPANY Direct Materials Budget April May June Materials needed for production (pounds) 0 0 0 Total materials required (pounds) 0 0 0 Materials to purchase (pounds) Cost of direct materials purchases $ 0 $ 0 $ 0 Zisk Company purchases direct materials on credit. Budgeted purchases are April, $100,000; May, $130,000; and June, $140,000. Cash payments for purchases are: 75% in the month of purchase and 25% in the first month after purchase. Purchases for March are $90,000. Prepare a schedule of cash payments for direct materials for April, May, and June. April May June 75% Current period purchases Ending accounts payable Total purchases 25% $ 0 S 0 $ 0 ZISK COMPANY Schedule of Cash Payments for Direct Materials April May June Cash payments for: Current period purchases Prior period purchases Total cash payments
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