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Ramos Company provides the following budgeted production for the next four months. April May June July Units to produce 460 590 560 560 Each finished
Ramos Company provides the following budgeted production for the next four months.
April | May | June | July | |
---|---|---|---|---|
Units to produce | 460 | 590 | 560 | 560 |
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 months production needs. Beginning direct materials inventory for April was 690 pounds. Direct materials cost $2 per pound. Prepare a direct materials budget for April, May, and June.
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