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Zira Co. reports the following production budget for the next four months.AprilJulyMayJuneProduction (units)626680658638Each finished unit requires six pounds of raw materials and the company wants to end each month with raw materials inventory equalto 30% of next month's production needs. Beginning raw materials inventory for April was 1,127 pounds. Assume direct materials cost$3 per pound.Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearestwhole dollar amount.)Answer is complete but not entirely correct.ZIRA CO.Direct Materials BudgetFor April, May, and JuneAprilMayJuneBudgeted production (units)Materials requirements per unit658 units6266806lbs.66Materials needed for production (lbs.)Budgeted ending inventory (lbs.)Total materials requirements (lbs.)Beginning inventory (lbs.)Materials to be purchased (lbs.)3,948 lbs.3,7564,0801,148 lbs.1,2241,1845,096 lbs.4,9805,2641,184 lbs.1,2241,1273,912 lbs3,8534,040per lb.3 $Cost per lb$11,55912,12011,736xTotal budgeted direct materials cost

Question

NEED HELP DESPERATELY!!  Can't figure out what I am doing wrong I followed the steps in the book and on the online guide the book gives and I am still getting it wrong!

Zira Co. reports the following production budget for the next four months.
April
July
May
June
Production (units)
626
680
658
638
Each finished unit requires six pounds of raw materials and the company wants to end each month with raw materials inventory equal
to 30% of next month's production needs. Beginning raw materials inventory for April was 1,127 pounds. Assume direct materials cost
$3 per pound.
Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest
whole dollar amount.)
Answer is complete but not entirely correct.
ZIRA CO.
Direct Materials Budget
For April, May, and June
April
May
June
Budgeted production (units)
Materials requirements per unit
658 units
626
680
6
lbs.
6
6
Materials needed for production (lbs.)
Budgeted ending inventory (lbs.)
Total materials requirements (lbs.)
Beginning inventory (lbs.)
Materials to be purchased (lbs.)
3,948 lbs.
3,756
4,080
1,148 lbs.
1,224
1,184
5,096 lbs.
4,980
5,264
1,184 lbs.
1,224
1,127
3,912 lbs
3,853
4,040
per lb.
3 $
Cost per lb
$
11,559
12,120
11,736x
Total budgeted direct materials cost
help_outline

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Zira Co. reports the following production budget for the next four months. April July May June Production (units) 626 680 658 638 Each finished unit requires six pounds of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month's production needs. Beginning raw materials inventory for April was 1,127 pounds. Assume direct materials cost $3 per pound. Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Answer is complete but not entirely correct. ZIRA CO. Direct Materials Budget For April, May, and June April May June Budgeted production (units) Materials requirements per unit 658 units 626 680 6 lbs. 6 6 Materials needed for production (lbs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Beginning inventory (lbs.) Materials to be purchased (lbs.) 3,948 lbs. 3,756 4,080 1,148 lbs. 1,224 1,184 5,096 lbs. 4,980 5,264 1,184 lbs. 1,224 1,127 3,912 lbs 3,853 4,040 per lb. 3 $ Cost per lb $ 11,559 12,120 11,736x Total budgeted direct materials cost

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check_circleAnswer
Step 1

Direct Material budget is prepared to compute the quantity and cost of materials to be purchased as per the production requirements.

Step 2

Working Formulas

A
B
C
D
E
1
ZIRA CO
Direct Material Budget
2
3 Particulars
4 Budgeted Production
5 material per unit
6 Material needed for production
7 Budgeted ending inventory
8 Total Material requirement
9 Beginning Inventory
10 Material to be Purchased
11 Cost per lb
12 Total Budgeted Direct Material CostB10*B11
April
May
July
June
626
658
638
680
6
6
6
6
-C4*C5
-B4*B5
D4*D5
-E4*E5
-D6*30%
C6*30%
-E6*30%
|ЕСб+C7
ЕВб+B7
D6+D7
1127
=B7
=C7
=B8-B9
|-С8-C9
-D8- D9
3
3
3
C10* C11
D10 D11
13
14
15
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A B C D E 1 ZIRA CO Direct Material Budget 2 3 Particulars 4 Budgeted Production 5 material per unit 6 Material needed for production 7 Budgeted ending inventory 8 Total Material requirement 9 Beginning Inventory 10 Material to be Purchased 11 Cost per lb 12 Total Budgeted Direct Material CostB10*B11 April May July June 626 658 638 680 6 6 6 6 -C4*C5 -B4*B5 D4*D5 -E4*E5 -D6*30% C6*30% -E6*30% |ЕСб+C7 ЕВб+B7 D6+D7 1127 =B7 =C7 =B8-B9 |-С8-C9 -D8- D9 3 3 3 C10* C11 D10 D11 13 14 15

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Step 3

Direct Material...

ZIRA CO
Direct Material Budget
Particulars
April
July
May
June
Budgeted Production
material per unit
Material needed for production
Budgeted ending inventory
Total Material requirement
Beginning Inventory
Material to be Purchased
626
680
658
638
6
6
6
6
3756
4080
3948
3828
1224
1184
1148
4980
5264
5096
1127
1224
1184
3853
4040
3912
Cost per lb
3
3
3
Total Budgeted Direct Material Cost
11559
12120
11736
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ZIRA CO Direct Material Budget Particulars April July May June Budgeted Production material per unit Material needed for production Budgeted ending inventory Total Material requirement Beginning Inventory Material to be Purchased 626 680 658 638 6 6 6 6 3756 4080 3948 3828 1224 1184 1148 4980 5264 5096 1127 1224 1184 3853 4040 3912 Cost per lb 3 3 3 Total Budgeted Direct Material Cost 11559 12120 11736

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