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Ramos Company provides the following budgeted production for the next four months. 540 April May June July Units to produce 442 570 544 Each finished

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Ramos Company provides the following budgeted production for the next four months. 540 April May June July Units to produce 442 570 544 Each finished unit requires 5 pounds of direct materials. 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. Prepare a direct materials budget for April, May, and June. May 570 5 June 544 units 5 pounds RAMOS COMPANY Direct Materials Budget April Units to produce 442 Materials required per unit 5 Materials needed for production (pounds) Add: Desired ending materials inventory (pounds) Total materials requirements (pounds) Less: Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases 0

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