Question

Zira Co. reports the following production budget for the next four months. April 676 May 730 July 688 June Production (units) 708 Each finished unit requires six pounds of raw materials and the company wants to end each month with raw materials inventory equal to 40% of next month's production needs. Beginning raw materials inventory for April was 1,622 pounds. Assume direct materials cost $4 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 1

	Direct Materials Budget
	For April, May, and June
	April	May	June
Budgeted production (units)	676	730	708	units
Materials requirements per unit	6	6	6	lbs.
Materials needed for production(lbs.)	4056	4380	4248	lbs.
Budgeted ending inventory (lbs.)	1752	1699	1651	lbs.
Total materials requirements(lbs.)	5808	6079	5899	lbs.
Beginning inventory (lbs.)	(1622)	(1752)	(1699)	lbs.
Materials to be purchased(lbs.)	4186	4327	4200	lbs.
Cost per lb.	4	4	4	per lb.
Total budgeted direct materials cost	16744	17308	16800
Note: Beginning inventory (lbs.) can alternatively be written without parenthesis