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
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
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 20E: Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,...
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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!
Transcribed Image Text: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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