Ramos Co provides the following soles forecast and production budget for the next four months Sales (units) Budgeted production (units) April 680 620 May 760 750 June 710 720 July 780 720 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 060 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 Exercise 22-8 Manufacturing: Direct materials budget LO P1 Prepare a direct materials budget for April, May, and June ances May June 750 720 units RAMOS CO. Direct Materials Budget For April May, and June April Budget production (units) 620 Materials requirements per unit 5 Materials needed for productions 3.100 Budgeted ending inventory (bs Total materials requirements (bs) Beginning inventory (lbs) 825 Materials to be purchased (lbs) (825) Materials price per pound $ 2.00 $ Budgeted cost of direct materials purchases $ (1650) 5 5 3.750 5 lbs 3,600 0 O 2.00 s 0 0 2.00