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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

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

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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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
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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