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

22 Part1 of2 40 points eBook Hint Print References Ramos Co. provides the following sales forecast and production budget for the next four months: ' April May June July sales (units) 500 530 530 600 Budgeted production (units) 442 570 544 540 The company plans for finished goods inventory of120 units at the end of June. In addition, each nished 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 663 pounds. Direct materials cost $2 per pound. Each nished unit requires 0.50 hours of direct labor at the rate of $16 per hour. The company budgets variable overhead at the rate of $20 per direct labor hour and budgets xed overhead of $8,000 per month. Prepare a direct materials budget for April, May, and June. Budget production (units) aterials requirements per unit _2 Materials needed for production (lbs) = udgeted ending inventory (Ibs.) _ Total materials requirements (lbs. ) eg=inning inventory (lbs. ) _ Materials to be purchased (lbs. ) Materials price per pound Budgeted cost of direct materials purchases Check my work