Required information Miami Solar manufactures solar panels for industrial use. The company budgets production of 4,700 units (solar panels) in July and 4,900 units in August. Each unit requires 2 pounds of direct materials, which cost $6 per pound. The companys policy is to maintain direct materials inventory equal to 20% of the next months direct materials requirement. As of June 30, the company has 1,880 pounds of direct materials in inventory, which complies with the policy. Prepare a direct materials budget for July.