3 Direct materials budget. - At Royal Company frve pounds of material are required per unit of product - Management wants materials on hand at the end of each month equal to 10% of the following month's, production needs. - On Marchi 31,13,000 pounds of material are on hand. Material cost is 50,40 per pound: April May June Total Quarter 2 July Monthly production (From 2 2) * Materials per unit (pound) Materials needed for production. Add: Budgeted ending direct materials (desired 10% of next month's total materials needed) Total direct materials needed (pounds) Less: beginning direct materials Desired total direct materials to purchase Chapter \& Master Buripeting objectles 1: What is budieting? gbjectioe 2i: Phepare various buthets to plan for the business