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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 months production needs. Beginning direct materials inventory for April was 966 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 May June July Units to produce 644 685 677 657 ZIRA COMPANY Direct Materials Budget April May June Units to produce 644 685 677 units Materials required per unit 5 5 5 pounds Materials needed for production (pounds) 3,220 3,425 3,385 pounds Add: Desired ending materials inventory (pounds) Total materials required (pounds) 3,220 3,425 3,385 pounds Less: Beginning materials inventory (pounds) Materials to purchase (pounds) 966 pounds Materials cost per pound $5 $5 $5 per pound Cost of direct materials purchases $4,830 $0 $0
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