Zira Company reports the following production budget for the next four months. Each finished unit requires four 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 701 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 Units to produce April May 584 625 Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases June 617 July 597 ZIRA COMPANY Direct Materials Budget April May June

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Zira Company reports the following production budget for the next four months. Each finished unit requires four 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 701 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
Units to produce
April May
584
625
Materials needed for production (pounds)
Total materials required (pounds)
Materials to purchase (pounds)
Cost of direct materials purchases
June
617
July
597
ZIRA COMPANY
Direct Materials Budget
April
May
June
Transcribed Image Text:Zira Company reports the following production budget for the next four months. Each finished unit requires four 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 701 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 Units to produce April May 584 625 Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases June 617 July 597 ZIRA COMPANY Direct Materials Budget April May June
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