Zira Co. reports the following production budget for the next four months.
April | May | June | July | |||||
Production (units) | 576 | 630 | 608 | 588 | ||||
Each finished unit requires four pounds of raw materials and the
company wants to end each month with raw materials inventory equal
to 40% of next month’s production needs. Beginning raw materials
inventory for April was 922 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.)
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