Required information Miami Solar manufactures solar panels for industrial use. The company budgets production of 5,400 units (solar panels) in July and 4,500 units in August. Each unit requires 4 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 8,640 pounds of direct materials in inventory, which complies with the policy. Prepare a direct materials budget for July