Exercise 20-4 Manufacturing: Direct materials budget LO P1 Zira Co. reports the following production budget for the next four months. July April May June 714 755 747 727 Production (units) Each finished unit requires four 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 1,142 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.)
Exercise 20-4 Manufacturing: Direct materials budget LO P1 Zira Co. reports the following production budget for the next four months. July April May June 714 755 747 727 Production (units) Each finished unit requires four 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 1,142 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:Exercise 20-4 Manufacturing: Direct materials budget LO P1
Zira Co. reports the following production budget for the next four months.
April May June
714 755 747
July
727
Production (units)
Each finished unit requires four 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 1,142 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.)
Materials needed for production (lbs.)
Total materials requirements (lbs.).
.
Materials to be purchased (lbs.)
Total budgeted direct materials cost -
ZIRA CO.
Direct Materials Budget
For April, May, and June
April
May
June
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education