Ramos Co. provides the following sales forecast and production budget for the next four months.

	April		May		June		July
Sales (units)	600		680		630		700
Budgeted production (units)	540		670		640		640

The company plans for finished goods inventory of 220 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 20% of next months production needs. Beginning direct materials inventory for April was 540 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.60 hours of direct labor at the rate of $12 per hour. The company budgets variable overhead at the rate of $16 per direct labor hour and budgets fixed overhead of $9,000 per month.

Prepare a direct materials budget for April, May, and June. RAMOS CO. May June 670 640 units 5 5 lbs. 3,350 3,200 lbs. Direct Materials Budget For April, May, and June April Budget production (units) 540 Materials requirements per unit 5 Materials needed for production (lbs.) 2,700 Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Beginning inventory (lbs.) Materials to be purchased (lbs.) 0 Materials price per pound Budgeted cost of direct materials purchases 0 0 0