Hospitable Co. provides the following sales forecast for the next four months: April May June July Sales (units) 510 590 540 540 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 204 units. Assume July's budgeted production is 540 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 813 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 June 542 236 746 540 units 236 lbs Budgeted production (units) 570 Materials requirements per unit Materials needed for production Budgeted ending inventory (lbs.) Total materials requirements Beginning inventory (los ) 236 lbs. Materials to be purchased Cost per Io Total cost