Each unit requires 3 pounds of direct materials, which cost $7 per pound. The company's policy is to maintain direct materials inventory equal to 40% of the next month's direct materials requirement. As of June 30, the company has 6,840 pounds of direct materials in inventory. Prepare the direct materials budget for July. MIAMI SOLAR Direct Materials Budget July Units to produce 5,700 Materials needed for production (pounds) Total materials required (pounds) Materials to be purchased (pounds) Cost of direct materials purchases