Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 40% of next month's production needs. Beginning direct materials inventory for April was 1,685 pounds. Direct materials cost $5 per pound.
Prepare a direct materials budget for April, May, and June.
Note: Round your answers to the nearest whole number.
\table[[,April,May,June,July],[Units to produce,702,730,736,716]]
\table[[ZIRA COMPANY,,,,],[Direct Materials Budget,,,,],[Units to produce,April,May,June,],[,702,730,716,units],[Materials needed for production (pounds),1685,1685,1685,pounds],[Total materials required (pounds),1,182,870,1,230,050,1,206,460,pounds],[Add: Desired ending materials inventory (pounds),4,212,4,380,4,416,pounds],[Materials to purchase (pounds),1,187,082,1,234,430,1,210,876,pounds],[,1,752,1,766,1,718,pounds],[Cost of direct materials purchases,4,279,4,394,4,368,pounds]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Critical Approach

Authors: John Friedlan

1st Edition

0130193720, 978-0130193728

More Books

Students also viewed these Accounting questions