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

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It…

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future…