Ramos Co. provides the following sales forecast and production budget for the next four months: Sales (units) Budgeted production (units) April 570 510 May 650 640 June 600 610 July 670 610 The company plans for finished goods inventory of 190 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 765 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.30 hours of direct labor at the rate of $23 per hour. The company budgets variable overhead at the rate of $27 per direct labor hour and budgets fixed overhead of $8,700 per month. Prepare a direct materials budget for April, May, and June. RAMOS CO. Direct Materials Budget For April, May, and June April May 510 June 610 units Budget production (units) 640 Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Materials price per pound Budgeted cost of direct materials purchases