7 A company budgets production of 4,900 units in May and 6,250 units in June. Each unit requires 4 pounds of direct materials. Direct materials cost $5 per pound. The company maintains direct materials inventory equal to 40% of next month's direct materials requirement. The company has 7.840 pounds of direct materials inventory on April 30. Prepare the direct materials budget for May 01:00:51 Direct Materials Budget May Units to produce 4,900 Materials required per unit (pounds) Materials needed for production (pounds) 19,600 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