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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 683 pounds. Direct materials cost $4 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
455
570
Units to produce
Materials required per unit
Materials needed for production (pounds)
Add: Desired ending materials inventory (pounds)
Total materials required (pounds)
Less: Beginning materials inventory (pounds)
Materials to purchase (pounds)
Materials cost per pound
Cost of direct materials purchases
June
560
Answer is complete but not entirely correct.
ZIRA COMPANY
Direct Materials Budget
April
✓
✓
July
540
$
$
455
5
2,275
855
3,130
(663) X
2,467 X
4
9,868
$
$
May
570✔
5
2,850
840
3,690
(855)
2,835
4
11,340
$
$
June
560
5
2,800
810
3,610
(840)
2,770
11,080
>
units
pounds
pounds
pounds
pounds
pounds
pounds
per
pound](https://content.bartleby.com/qna-images/question/9bf988cd-aed2-4ce6-b308-cb84c8c1b977/a48c3204-ea3b-441a-bf70-0bb1c6349667/pbovspd_thumbnail.jpeg)
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 683 pounds. Direct materials cost $4 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
455
570
Units to produce
Materials required per unit
Materials needed for production (pounds)
Add: Desired ending materials inventory (pounds)
Total materials required (pounds)
Less: Beginning materials inventory (pounds)
Materials to purchase (pounds)
Materials cost per pound
Cost of direct materials purchases
June
560
Answer is complete but not entirely correct.
ZIRA COMPANY
Direct Materials Budget
April
✓
✓
July
540
$
$
455
5
2,275
855
3,130
(663) X
2,467 X
4
9,868
$
$
May
570✔
5
2,850
840
3,690
(855)
2,835
4
11,340
$
$
June
560
5
2,800
810
3,610
(840)
2,770
11,080
>
units
pounds
pounds
pounds
pounds
pounds
pounds
per
pound
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