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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
100%
Please answer fast
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
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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education