Miami Solar manufactures solar panels for industrial use. The company budgets production of 5,000 units (solar panels) in July and 5,300 units in August Each unit requires 3 pounds of direct materials, which cost $6 per pound. The company's policy is to maintain direct materials inventory equal to 30% of the next month's direct materials requirement. As of June 30, the company has 4,500 pounds of direct materials in inventory. Required: Prepare the direct materials budget for July. G H J K 1 2 3 4 Units Produced July August 5,000 5,300 5 6 Pounds per 7 unit Cost per Materials pound requirement $6 30% June 30 inventory 4,500 00 8 3 MIAMI SOLAR Direct Materials Budget July Units to produce Materials required per unit (pounds) Materials needed for production (pounds) Add: Desired ending materials inventory Total materials required (pounds) Less: Beginning materials inventory (pounds) Materials to be purchased (pounds) Materials cost per pound Cost of direct materials purchases