Required information Miami Solar manufactures solar panels for industrial use. The company budgets production of 5,500 units (solar panels) in July and 4,400 units in August. Each unit requires 3 pounds of direct materials, which cost $6 per pound. The company's policy is to maintain direct materials inventory equal to 40% of the next month's direct materials requirement. As of June 30, the company has 6,600 pounds of direct materials in inventory. Prepare the direct materials budget for July. Answer is complete but not entirely correct. MIAMI SOLAR Direct Materials Budget July Units to produce 5,500 Materials required per unit (pounds) 3 Materials needed for production (pounds) 16,500 ( Add: Desired ending materials inventory 0 6.600 Total materials required (pounds) 23,100 Less: Beginning materials inventory (pounds) (6,600) Materials to purchase (pounds) 16,500 Materials cost per pound S 6 Cost of direct materials purchases 99,000