Zira Co. Direct Materials Budget: April, May, and June

Chapter 20 Homework i Saved Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. 3 Zira Co. reports the following production budget for the next four months. April May June July 16.66 Production (units) 664 705 697 677 points Each finished unit requires five pounds of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month's production needs. Beginning raw materials inventory for April was 996 pounds. Assume direct materials cost $5 per pound. Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Answer is complete and correct. ZIRA CO. Direct Materials Budget For April, May, and June April May June Budgeted production (units) 664 705 697 units Materials requirements per unit 50 5 5 Ibs. Materials needed for production (Ibs.) 3,320 3,525 3,485 Ibs Budgeted ending inventory (Ibs.) 1,058 1,046 1,016 Ibs. Total materials requirements (Ibs. 4,378 4,571 4,501 Ibs. Beginning inventory (Ibs.) V 996 1,058 1,046 Ibs Materials to be purchased (Ibs.) 3,382 3,513 3,455 Ibs. Cost per lb. 50$ 50 $ 5per lb. Total budgeted direct materials cost 16,910 $ 17,565 $ 17,275