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 20% of next month's production needs. Beginning direct materials inventory for April was 632 pounds. Direct materials cost $4 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 June July 632 660 666 646 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) Cost of direct materials purchases Materials cost per pound ZIRA COMPANY Direct Materials Budget April May June 632 660 666 units 4 4 2,528 2,640 4 pounds 2,664 pounds 2,528 2,640 2,664 pounds $ 4 $ 4 $ 4 per pound $ 0 $ 0 $ 0

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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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 20% of next month's production needs.
Beginning direct materials inventory for April was 632 pounds. Direct materials cost $4 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
June
July
632
660
666
646
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)
Cost of direct materials purchases
Materials cost per pound
ZIRA COMPANY
Direct Materials Budget
April
May
June
632
660
666 units
4
4
2,528
2,640
4 pounds
2,664 pounds
2,528
2,640
2,664 pounds
$
4 $
4
$
4 per pound
$
0
$
0 $
0
Transcribed Image Text: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 20% of next month's production needs. Beginning direct materials inventory for April was 632 pounds. Direct materials cost $4 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 June July 632 660 666 646 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) Cost of direct materials purchases Materials cost per pound ZIRA COMPANY Direct Materials Budget April May June 632 660 666 units 4 4 2,528 2,640 4 pounds 2,664 pounds 2,528 2,640 2,664 pounds $ 4 $ 4 $ 4 per pound $ 0 $ 0 $ 0
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