Hospitable Co. provides the following sales forecast for the next four months: April May June July 640 720 670 670 Sales (units) 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 256 units. Assume July's budgeted production is 670 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 40% of next month's production needs. Beginning raw materials inventory for April was 1,344 pounds. Assume direct materials cost $4 per pound. Prepare a direct materials budget for April, May, and June. HOSPITABLE CO. Direct Materials Budget For April, May, and June May 672 April June 700 670 units Budgeted production (units) Materials requirements per unit Materials needed for production Budgeted ending inventory (lbs.) Total materials requirements Beginning inventory (lbs.) Materials to be purchased Cost per lb Total cost