Question

Please help if you really know accounting

Ret The following production budget for the next four months was provided by Red Car Enterprises. April 614 May 655 June 647 Production (units) July 627 Each finished unit requires four pounds of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month's production needs. Beginning raw materials inventory for April was 737 pounds. Assume direct materials cost $5 per pound Prepare a direct materials budget for April, May, and June (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Answer is complete but not entirely correct. ZIRA CO. Direct Materials Budget For April, May, and June April May < Prev 15 of 18 I Next >

Answer 1

July June 647 u. zuty. units. 165 627 2508 lbs 2620 2588 ZILA CO Dilect material Budget for April, may & June Particulars April may Budgeted Production 614 655 materials requirements per unit - b 4 u materials needed for production (axb! 2,456. Budgeted Ending inventory (lbs) d (2,620x30%) 786. 776 Total material requirement &=(c+d) 3,242 3,396 Beginning inventory – 737 786 materials to be purchased e-f). 2,505 2610 cost per lb - h. Total Budgeted airect material cost $,12,525 $13,000 i» (gxh) & 752 lbs 3,340 lbs 776 lbs lbs perib $5 2,564 $5 $12,820

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