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Hospitable Co. provides the following sales forecast for the next four months: April May June July Sales (units) 590 670 620 620 The company wants

Hospitable Co. provides the following sales forecast for the next four months: April May June July Sales (units) 590 670 620 620 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 118 units. Assume Julys budgeted production is 620 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 1,212 pounds. Assume direct materials cost $6 per pound. Prepare a direct materials budget for April, May, and June.

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