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Question - Zira Co. reports the following production budget for the next four months.
Production (units)
April 574
May 615
June 607
July 587
Each finished unit requires six pounds of raw materials and the company wants to end each month with raw materials inventory equal to 20% of next month's production needs. Beginning raw materials inventory for April was 689 pounds. Assume direct materials cost $5 per pound.
Required - Prepare a direct materials budget for April, May, and June.
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