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Exercise 20-8 (Algo) Manufacturing: Direct materials budget LO P1 Zira Company reports the following production budget for the next four months. Each finished unit requires five pounds of direct materials, and the company wants to end each month with direct materials inventory equal to 30% of next month's production neec Beginning direct materials inventory for April was 996 pounds. Direct materials cost $5 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) Units to produce April May June 664 705 697 A Units to produce Materials required per unit Materials needed for production (pounds) Add Desired ending materials inventory (pounds) Total materials required (pounds) Less: Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases July 677 ZIRA COMPANY Direct Materials Budget April S S 664 5 3,320 664 3,964 5 S 0 $ May 705 3,525 705 4,230 5 0 S S June 697 units 5 pounds 3,485 pounds 697 pounds 4,182 pounds 5 per pound 0

Exercise 20-8 (Algo) Manufacturing: Direct materials budget LO P1 Zira Company reports the following production budget for the next four months. Each finished unit requires five pounds of direct materials, and the company wants to end each month with direct materials inventory equal to 30% of next month's production neec Beginning direct materials inventory for April was 996 pounds. Direct materials cost $5 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) Units to produce April May June 664 705 697 A Units to produce Materials required per unit Materials needed for production (pounds) Add Desired ending materials inventory (pounds) Total materials required (pounds) Less: Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases July 677 ZIRA COMPANY Direct Materials Budget April S S 664 5 3,320 664 3,964 5 S 0 $ May 705 3,525 705 4,230 5 0 S S June 697 units 5 pounds 3,485 pounds 697 pounds 4,182 pounds 5 per pound 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Exercise 20-8 (Algo) Manufacturing: Direct materials budget LO P1 Zira Company reports the following production budget for the next four months. Each finished unit requires five pounds of direct materials, and the company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 996 pounds. Direct materials cost $5 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) Units to produce April May 664 705 Units to produce Materials required per unit Materials needed for production (pounds) Add: Desired ending materials inventory (pounds) Total materials required (pounds) Less: Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases June 697 July 677 ZIRA COMPANY Direct Materials Budget April $ S 664 5 3,320 664 3,964 5 $ 0 $ May 705 5 3,525 705 4,230 5 S 0 $ June 697 units 5 pounds 3,485 pounds 697 pounds 4,182 pounds 5 per pound 0
Transcribed Image Text:Exercise 20-8 (Algo) Manufacturing: Direct materials budget LO P1 Zira Company reports the following production budget for the next four months. Each finished unit requires five pounds of direct materials, and the company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 996 pounds. Direct materials cost $5 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) Units to produce April May 664 705 Units to produce Materials required per unit Materials needed for production (pounds) Add: Desired ending materials inventory (pounds) Total materials required (pounds) Less: Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases June 697 July 677 ZIRA COMPANY Direct Materials Budget April $ S 664 5 3,320 664 3,964 5 $ 0 $ May 705 5 3,525 705 4,230 5 S 0 $ June 697 units 5 pounds 3,485 pounds 697 pounds 4,182 pounds 5 per pound 0
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