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

See similar textbooks

Similar questions

Please help me with correct answer thanku
Tora Company plans to produce 1,020 units in July. Each unit requires three hours of direct labor. The direct labor rate is $11 per hou. Prepare a direct labor budget for July TORA CO. Direct Labor Budget July Units to produce 1.020 units Direct labor hours needed Cost of direct labor
Tucker Inc. makes dog treats. The material to be purchased from the production budget is as follows: April May JuneMaterial to be purchased 161,800 270,900 195,600 Tucker Inc. pays $0.40 per kilo for its material. 60% of a months purchases are paid for in th month of purchase, 40% is paid for in the following month. The March 31 accounts payable balance is $10,000 and will be paid in full in the first month. The total cash disbursement for April is ____________ The total cash disbursement for May is ____________ The total cash disbursement for June is ____________ The total cash disbursement for the quarter is____________
A company budgets production of 4,720 units in May and 6,025 units in June. Each unit requires 4 pounds of direct materials. Direct materials cost $5 per pound. The company maintains direct materials inventory equal to 40% of next month's direct materials requirement. The company has 7,552 pounds of direct materials inventory on April 30. Prepare the direct materials budget for May. Units to produce Direct Materials Budget Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases May
Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows: February March. 14,000 units 15,500 units April.. 11,900 units May June. 12,600 units 14,500 units The company wants to maintain monthly ending inventories of Material A equal to 20% of the following month's production needs. On January 31, this target had not been attained since only 2,000 yards of Material A were on hand. The cost of Material A is $0.80 per yard. The company wants to prepare a Direct Materials Purchases Budget. The total cost of Material A to be purchased in February is: $45,200 O $34,320 O $42,900 O $39.440
JSS Company’s sales budget projects unit sales of part X of 15,000 units in January, 16,000 units in February, and 17,000 units in March. Each unit of part X requires 1.5 pounds of materials, which cost $2.5 per pound. JSS Company desires its ending raw materials inventory to equal 35% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2020. Instructions (a) Prepare a production budget for January and February 2021. (b) Prepare a direct materials budget for January 2021
The sales budget of a company for November and December is 46,000 units and 48,000 units, respectively. its production budget for the same two months is 43,000 units and 44,000 units, respectively. Each unit of finished goods requires 4 pounds of raw materials. The company always maintains raw materials inventory equal to 20% of the following months production needs. Assume the company pays $2.75 per pound of raw material. It alvways pays for 50% of its raw material purchases in the month of purchase and the remainder in the following month. The accounts payable balance on October 31 is $146,000. What amount would the company show in their November cash budget for cash disbursements for raw material purchases? Multiple Choice $391,600 $382,850 $388,600 $383,600 ( Prev 4 of 23 MacBook Ain
answer in text form please (without image)
The cost of the direct material that should be purchased in August is:
Ramos Company...
Talal Company’s sales budget projects unit sales of part 198Z of 12,000 units in January, 13,000 units in February, and 14,000 units in March. Each unit of part 198Z requires 5 pounds of materials, which cost $2 per pound. Tyson Chandler Company desires its ending raw materials inventory to equal 60% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2019. Instructions (a) Prepare a production budget for January and February 2020. (b) Prepare a direct materials budget for January 2020.
Ramos Company provides the following (partial) production budget for the next three months. Each finished unit requires 0.50 hour of direct labor at the rate of $16 per hour. The company budgets variable overhead at the rate of $20 per direct labor hour and budgets fixed overhead of $8,000 per month. Production Budget Units to produce Required 1 Required 2 1. Prepare a direct labor budget for April, May, and June. 2. Prepare a factory overhead budget for April, May, and June. April 442 Complete this question by entering your answers in the tabs below. Units to produce May 570 Direct labor hours needed June 544 Prepare a direct labor budget for April, May, and June. (Enter your direct labor hours (hours) per unit in two decimal places.) Cost of direct labor RAMOS COMPANY Direct Labor Budget April 544 units