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Ramos Co. provides the following sales forecast and production budget for the next four months. Sales (units) Budgeted production (units) April May June July
Ramos Co. provides the following sales forecast and production budget for the next four months. Sales (units) Budgeted production (units) April May June July 680 760 710 780 620 750 720 720 The company plans for finished goods inventory of 300 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 930 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.60 hours of direct labor at the rate of $17 per hour. The company budgets variable overhead at the rate of $21 per direct labor hour and budgets fixed overhead of $9,800 per month. Prepare a direct materials budget for April, May, and June. RAMOS CO. Direct Materials Budget For April, May, and June. April May June 620 750 720 units Budget production (units) Materials needed for production (lbs) Total materials requirements (lbs.) Materiale in hanchard (the) 5 Next
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