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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 683 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.) June April 455 Units to produce May 570 July 560 540 455 units 5 5 5 * Answer is complete but not entirely correct. ZIRA COMPANY Direct Materials Budget April May June Units to produce 570 580 Materials required per unit Materials needed for production (pounds) 2,275 2.850 2.800 Add: Desired ending materials inventory (pounds) 855 840 810 Total materials required (pounds) 3,130 3,690 3.610 Less: Beginning materials inventory (pounds) (662) X (855) (840) Materials to purchase (pounds) 2.487 X 2.835 2.770 Materials cost per pound $ S Cost of direct materials purchases 9,808 $ 11,340 11.080 pounds pounds > > pounds pounds pounds pounds s per 4 4 4 pound s S
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