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. (Click on the Graded Worksheet Tab below.) 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. Units produced Direct materials required per unit Direct materials cost Company's policy-direct materials inventory June 30 inventory Required: Prepare the direct materials budget for July. July August 5,000 5,300 3 pounds $6 per pound 30% of next month's direct materials requirement 4,500 pounds A B C D E F G 123256RAR2 7 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. (Click on the Graded Worksheet Tab below.) Each unit requires 3 pounds of direct materials, which cost $6 per pound. The company's policy is to 6 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. 9 Required: Prepare the direct materials budget for July. 10 11 MIAMI SOLAR Direct Materials Budget 13 14 Units to produce 15 Materials required per unit (pounds) 16 Materials needed for production (pounds) 17 18 Total materials required (pounds) 19 20 Materials to be purchased (pounds) 21 22 Budgeted direct materials purchases 23 July 5,000 3 n H Required: Prepare the direct materials budget for July. 10 11 12 13 14 Units to produce MIAMI SOLAR Direct Materials Budget 15 Materials required per unit (pounds) July 5,000 3 16 Budgeted units sales for month 17 Materials cost per pound 18 Materials required per unit (pounds) 19 20 Materials to be purchased 21 22 Budgeted direct materials purchases 23 24 7 As of June 30, the company has 4,500 pounds of direct materials in 9 10 11 12 13 Required: Prepare the direct materials budget for July. Direct Materials Budget MIAMI SOLAR 14 Units to produce 15 Materials required per unit (pounds) 16 Materials needed for production (pounds) 17 18 Add: Beginning materials inventory (pounds) 19 Add: Desired ending materials inventory 20 21 22 23 24 Less: Beginning materials inventory (pounds) Less: Desired ending materials inventory July 5,000 3 +