Zira Co. reports the following production budget for the next
four months.
April | May | June | July | |||||
Production (units) | 676 | 730 | 708 | 688 | ||||
Each finished unit requires six 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 1,217 pounds. Assume direct materials cost
$3 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.)
If you have any doubts please comment on the answer
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