Each unit requires 4 pounds of direct materials, which cost $5 per pound. The company's policy is to maintain direct materials inventory equal to 20% of the next month's direct materials requirement. As of June 30, the company has 3,680 pounds of direct materials in inventory. Prepare the direct materials budget for July. MIAMI SOLAR Direct Materials Budget July Units to produce 4,600 Materials required per unit 4 (pounds) Materials needed for production (pounds) Add: Desired ending materials inventory Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases 4,160