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..v... v -. "v. ..._'.v. . Ramos Co. provides the following sales forecast and production budget for the next four months. Apri 1 May June July Sales (units) 550 630 580 650 Budgeted production (units) 490 620 590 590 The company plans for finished goods inventory of 170 units at the end of June. In addition, each finished unit requires 6 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 25% of next month's production needs. Beginning direct materials inventory for April was 735 pounds. Direct materials cost $3 per pound. Each nished unit requires 0.60 hours of direct labor at the rate of $21 per hour. The company budgets variable overhead at the rate of $25 per direct labor hour and budgets fixed overhead of $8,500 per month. K Prepare a direct materials budget for April, May, and June. Budget production (units) 590 units Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Materials price per pound Budgeted cost of direct materials purchases