Question

Zira Co. reports the following production budget for the next four months.

	April		May		June		July
Production (units)	604		645		637		617

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 725 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.)

Each finished unit requires four pounds of raw materials and the company wants to end each month w to 30% of next month's production needs. Beginning raw materials inventory for April was 725 pounds. $6 per pound. Prepare a direct materials budget for April, May, and June. (Round your intermediate caiculations and whole dollar amount.) ZIRA CO Direct Materials Budget For April, May, and June June May April Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Total budgeted direct materials cost

Answer 1

April 604 May 645 June July 637 617 C S.No Particulars Computation A Production (Units) (given) B Raw Materials required per unit (given Materials need for production AB D Add: 30% of next month's production needs 30% x Next month's C E Total Material Requirements C-D Less: Beginning Raw Material Inventory Previous month's D Materials to be purchased H Cost per pound (given) Total Budgeted Direct Materials Cost GXH F 2416 2580 2548 2468 774 764.4 740.4 3190 3344.4 3288.4 -7251 -774 -764.4 2465 2570.4 2524 $6 $14.790 $15.422 $15.144 E-F