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Question - Zira Co. reports the following production budget for the next four months.
April
May
June
July
Production (units)
572
600
606
586
Each finished unit requires four 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 686 pounds. Assume direct materials cost $6 per pound.
Required - Prepare a direct materials budget for April, May, and June.
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