Question

Zira Co. reports the following production budget for the next four months. Production (units) April 662 May 690 June 696 July 676 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 794 pounds. Assume direct materials cost $6 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.) ZIRA CO. Direct Materials Budget For April, May, and June April May 662 4 2,648 June units lbs. lbs. Budgeted production (units) Materials requirements per unit Materials needed for production (lbs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Beginning inventory (lbs.) Materials to be purchased (lbs.) Cost per lb. Total budgeted direct materials cost 794 lbs. 6 $ 6 $ 6 per lb.

Answer 1

RUIZ Direct Material Budget For the April ,May and June April |Мay June Budgeted Prodcution Materila required per Unit 696 Units 4 lbs 2784 lbs 811 lbs 3595 lbs 835 lbs 2760 lbs 662 690 4 4 Materila need for Prodcution (lbs) ADD:Budgeted ending inventory Total Material Required Less: Beginnin invneotry Direct Material Purchases Cost per lb Totalbudgeted direct Material Cost 2648 2760 828 835 3595 3476 794 828 2682 2767 6 Per lbs 6 6 16560 16092 16603