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 619 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 516 May 570 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 548 July 528 ZIRA COMPANY Direct Materials Budget April $ $ 516 4 2,064 684 2,748 5 $ 0 $ May 570 4 2,280 658 2,938 5 $ 0 $ June 548 units 4 pounds 2,192 pounds 634 pounds 2,826 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 619 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 516 May 570 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 548 July 528 ZIRA COMPANY Direct Materials Budget April $ $ 516 4 2,064 684 2,748 5 $ 0 $ May 570 4 2,280 658 2,938 5 $ 0 $ June 548 units 4 pounds 2,192 pounds 634 pounds 2,826 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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