Hospitable Co. provides the following sales forecast for the next four months: Sales (units) April May June July 580 660 610 610 The company wants to end each month with ending finished goods inventory equal to 40% of next month's sales. Finished goods inventory on April 1 is 232 units. Assume July's budgeted production is 620 units. Prepare a production budget for the months of April, May, and June. HOSPITABLE CO. Production Budget For April, May, and June April Next month's budgeted sales (units) 660 Ratio of inventory to future sales 40% May June 610 610 Required units of available production Units to be produced Hospitable Co. provides the following sales forecast for the next four months: Sales (units) April May June July 580 660 610 610 The company wants to end each month with ending finished goods inventory equal to 20% of next month's sales. Finished goods inventory on April 1 is 116 units. Assume July's budgeted production is 610 units. In addition, each finished unit requires five pounds of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month's production needs. Beginning raw materials inventory for April was 894 pounds. Assume direct materials cost $5 per pound. Prepare a direct materials budget for April, May, and June. HOSPITABLE CO. Direct Materials Budget For April, May, and June April May 596 June Budgeted production (units) 650 610 units Materials needed for production Total materials requirements Materials to be purchased Total cost