Exercise 20-4 Manufacturing: Direct materials budget LO P1 Zira Co. reports the following production budget...
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Exercise 20-4 Manufacturing: Direct materials budget LO P1 Zira Co. reports the following production budget for the next four months. June April 694 May 735 July 707 Production (units) 727 Each finished unit requires six pounds of raw materials and the company wants to end each month with raw materials inventory equal to 20% of next month's production needs. Beginning raw materials inventory for April was 833 pounds. Assume direct materials cost $4 per pound. Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) ZIRA CO. Direct Materials Budget For April, May, and June April 694 May June 735 727 units Budgeted production (units) Materials requirements per unit Materials needed for production (lbs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Beginning inventory (lbs.) Materials to be purchased (lbs.) Cost per lb. Total budgeted direct materials cost
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