Zira Co. reports the following production budget for the next four months. June 717 Production (units) April 684 Budgeted production (units) Materials requirements per unit May 725 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 1,642 pounds. Assume direct materials cost $3 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.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Beginning inventory (lbs.) Materials to be purchased (lbs.) Cost per lb. Total budgeted direct materials cost July 697 ZIRA CO. Direct Materials Budget For April, May, and June April 684 May 725 June 717 units

Zira Co. reports the following production budget for the next four months. June 717 Production (units) April 684 Budgeted production (units) Materials requirements per unit May 725 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 1,642 pounds. Assume direct materials cost $3 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.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Beginning inventory (lbs.) Materials to be purchased (lbs.) Cost per lb. Total budgeted direct materials cost July 697 ZIRA CO. Direct Materials Budget For April, May, and June April 684 May 725 June 717 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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