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Zira Company reports the following production budget for the next four months. Each finished unit requires four pounds of direct materials, and the company wants
Zira Company reports the following production budget for the next four months. Each finished unit requires four 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 629 pounds. Direct materials cost $6 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 | 524 | 565 | 557 | 537 |
Zira Company reports the following production budget for the next four months. Each finished unit requires four 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 629 pounds. Direct materials cost $6 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) April 524 Units to produce May 565 June 557 July 537 ZIRA COMPANY Direct Materials Budget April May June Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases
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