Hospitable Co. provides the following sales forecast for the next four months:

	April	May	June	July
Sales (units)	680	760	710	710

The company wants to end each month with ending finished goods inventory equal to 20% of next months sales. Finished goods inventory on April 1 is 136 units. Assume Julys budgeted production is 710 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 months production needs. Beginning raw materials inventory for April was 1,392 pounds. Assume direct materials cost $3 per pound.

Prepare a direct materials budget for April, May, and June.

HOSPITABLE CO.
Direct Materials Budget
For April, May, and June
	April	May	June
Budgeted production (units)	696	750	710	units
Materials requirements per unit
Materials needed for production
Budgeted ending inventory (lbs.)
Total materials requirements
Beginning inventory (lbs.)
Materials to be purchased
Total cost