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
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea498b79-a330-4cbe-a4b5-d7ae25ca6d08%2F589da75a-a0e4-40b0-a8d1-ab241bb1ba4a%2Fxiyqic_processed.png&w=3840&q=75)
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