Ramos Co. provides the following sales forecast and production budget for the next four months: April May Sales (units) July 780 Budgeted production (units) 640 770 780 June 730 740 800 740 The company plans for finished goods inventory of 320 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 960 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.40 hours of direct labor at the rate of $19 per hour. The company budgets variable overhead at the rate of $23 per direct labor hour and budgets fixed overhead of $10,000 per month Prepare a direct materials budget for April, May, and June. RAMOS CO. Direct Materials Budget For April May, and June April May Juno Budget production (units) 640 770 740 units Materials needed for production (lbs.) Total materials requirements (ibs) 0 0 Materials to be purchased (lbs) Materials price per pound