Zira Company reports the following production budget for the next four months. Each finished unit requires four pounds of directmaterials, 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 847 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 produceApril May June706 760738Units to produceMaterials required per unitMaterials 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 poundCost of direct materials purchasesJuly718ZIRA COMPANYDirect Materials BudgetApril$$70642,8242,824↑5 $0 $May76043,040Saved3,040June5 $0 $738 units4 pounds2,952 pounds2,952 pounds5 per pound0future vahe tables

Direct materials are the expenses that are directly used for the production of goods and services…

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 847 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 706 760 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 July 738 718 ZIRA COMPANY Direct Materials Budget $ $ April 706 4 2,824 2,824 5 $ 0 $ May 760 4 3,040 3,040 Saved 5 0 June $ $ 738 units 4 pounds 2,952 pounds 2,952 pounds 5 per pound 0

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 847 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 706 760 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 July 738 718 ZIRA COMPANY Direct Materials Budget $ $ April 706 4 2,824 2,824 5 $ 0 $ May 760 4 3,040 3,040 Saved 5 0 June $ $ 738 units 4 pounds 2,952 pounds 2,952 pounds 5 per pound 0

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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