Prepare a direct materials budget for April, May, and June

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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.

Reference no: EM132818108

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