Zira Company reports the following production budget for the next four months. Each finished unit requires five pounds of direct materials, and the company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 834 pounds. Direct materials cost $4 per pound. Prepare a direct materials budget for April, May, and June. Note: Round your answers to the nearest whole number. Units to produce April 556 May June July 610 588 568 Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases ZIRA COMPANY Direct Materials Budget April May June

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...
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Zira Company reports the following production budget for the next four months. Each finished unit requires five pounds of direct
materials, and the company wants to end each month with direct materials inventory equal to 30% of next month's production needs.
Beginning direct materials inventory for April was 834 pounds. Direct materials cost $4 per pound.
Prepare a direct materials budget for April, May, and June.
Note: Round your answers to the nearest whole number.
Units to produce
April
556
May
June
July
610
588
568
Units to produce
Materials needed for production (pounds)
Total materials required (pounds)
Materials to purchase (pounds)
Cost of direct materials purchases
ZIRA COMPANY
Direct Materials Budget
April
May
June
Transcribed Image Text:Zira Company reports the following production budget for the next four months. Each finished unit requires five pounds of direct materials, and the company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 834 pounds. Direct materials cost $4 per pound. Prepare a direct materials budget for April, May, and June. Note: Round your answers to the nearest whole number. Units to produce April 556 May June July 610 588 568 Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases ZIRA COMPANY Direct Materials Budget April May June
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