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Zira Company reports the following production budget for the next four months. Each finished unit requires six 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 1,235 pounds. Direct materials cost $3 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) Units to produce April May 686 740 Units to produce Materials required per unit Materials needed for production (bs) June 718 Add: Desired ending materials inventory (bs) Total materials required (bs) Less: Beginning materials inventory (lbs) Materials to purchase (bs) Materials cost per pound Cost of direct materials purchases ZIRA CO. Direct Materials Budget April July 698 S S 686 6 4,110 4,116 1.235 35 5 May 740 0 4.440 4,440 35 33 June 718 units 0lbs 4,308 lbs 4.300 lbs ibs 3 per lb. 3

Zira Company reports the following production budget for the next four months. Each finished unit requires six 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 1,235 pounds. Direct materials cost $3 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) Units to produce April May 686 740 Units to produce Materials required per unit Materials needed for production (bs) June 718 Add: Desired ending materials inventory (bs) Total materials required (bs) Less: Beginning materials inventory (lbs) Materials to purchase (bs) Materials cost per pound Cost of direct materials purchases ZIRA CO. Direct Materials Budget April July 698 S S 686 6 4,110 4,116 1.235 35 5 May 740 0 4.440 4,440 35 33 June 718 units 0lbs 4,308 lbs 4.300 lbs ibs 3 per lb. 3

Cornerstones of Cost Management (Cornerstones Series)
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 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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Zira Company reports the following production budget for the next four months. Each finished unit requires six 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 1,235 pounds. Direct materials cost $3 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) Units to produce April May June 686 740 718 Units to produce Materials required per unit Materials needed for production (bs) Add: Desired ending materials inventory (lbs) Total materials required (bs) Less: Beginning materials inventory (lbs) Materials to purchase (bs) Materials cost per pound Cost of direct materials purchases ZIRA CO. Direct Materials Budget April July 698 S S 686 8 4,110 4,116 1.235 3 S 3 3 May 740 O 4,440 4,440 3 5 S June 718 units 6lbs 4.308 lbs 4.300 b lbs. 3 per lb. 3
Transcribed Image Text:Zira Company reports the following production budget for the next four months. Each finished unit requires six 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 1,235 pounds. Direct materials cost $3 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) Units to produce April May June 686 740 718 Units to produce Materials required per unit Materials needed for production (bs) Add: Desired ending materials inventory (lbs) Total materials required (bs) Less: Beginning materials inventory (lbs) Materials to purchase (bs) Materials cost per pound Cost of direct materials purchases ZIRA CO. Direct Materials Budget April July 698 S S 686 8 4,110 4,116 1.235 3 S 3 3 May 740 O 4,440 4,440 3 5 S June 718 units 6lbs 4.308 lbs 4.300 b lbs. 3 per lb. 3
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