Question

2. Zira Co. reports the following production budget for the next four months.

	April		May		June		July
Production (units)	656		710		688		668

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 1,181 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.)

ZIRA CO.
Direct Materials Budget
For April, May, and June
	April	May	June
Budgeted production (units)	656	710	688	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

Answer 1

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 May June Budgeted production (units) 656 710 688 units Materials requirements per unit 6 6 6 Materials needed for production (lbs.) 3936 4260 4128 Budgeted ending inventory (lbs.) 1278 1238 1202 Total materials requirements (lbs.) 5214 5498 5330 Beginning inventory (lbs.) -1181 -1278 -1238 Materials to be purchased (lbs.) 4033 4220 4092 Cost per lb. 5 5 5 Total budgeted direct materials cost 20165 21100 20460