Question

4 0 Zira Co. reports the following production budget for the next four months. April 692 June May 720 July 706 Production (units) 726 Each finished unit requires six pounds of raw materials and the company wants to end each month with raw materials inventory equal to 20% of next month's production needs. Beginning raw materials inventory for April was 830 pounds. Assume direct materials cost $3 per pound Assignments ct materials budget for April, May, and June. (Round your Intermediate calculations and final answers to the neerest amount) ZIRA CO. Direct Materials Budget For April, May, and June May April June Materials needed for production (bs) nces Total materials requirements (bs) Materials to be purchased (bs) Total budgeted direct materials cost <Prev 1 of 1 Next O Hi

Answer 1

Direct Materials Budget For April, May and June April 692 May 720 June 726 July 706 (refer workings below) 6 pounds 4,236 (20% of next month's production needs) Units to be produced Multiply by: Quantity of direct materials needed per unit Materials needed for production (lbs.) Plus: Desired ending inventory of direct materials Total materials requirements (lbs.) Less: Beginning inventory of direct materials Materials to be purchased (lbs.) Multiply by: costs per pound Total Budgeted direct material cost 4,152 864 5,016 830 4,186 3.00 $ 12,557 $ 4,320 871 5,191 864 4,327 3.00 12,982 4,356 847 5,203 871 4,332 3.00 12,996 (20% of current month's production needs) $ $ $ $