: homework i Saved Required information Ramos Co. provides the following sales forecast and production budget for the next four months. April May June July Sales (units) 700 780 730 800 Budgeted production (units) 640 770 740 740 The company plans for finished goods inventory of 320 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 960 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.40 hours of direct labor at the rate of $19 per hour. The company budgets variable overhead at the rate of $23 per direct labor hour and budgets fixed overhead of $10,000 per month. Prepare a direct materials budget for April, May, and June. RAMOS CO. Direct Materials Budget For April, May, and June April May June Budget production (units) 640 770 740 units Materials requirements per unit 5 5 Ibs . Materials needed for production (Ibs.) Budgeted ending inventory (Ibs.) Total materials requirements (Ibs.) Beginning inventory (Ibs. 960 Materials to be purchased (Ibs.) (960) 0 0 Materials price per pound $ 2.00 $ 2.00 $ 2.00 Budgeted cost of direct materials purchases (1,920) $ 0 Prev 1 2 of 3 Next >