Required information Miami Solar manufactures solar panels for industrial use. The company budgets production of 4,900 units (solar panels) in July and 4,700 units in August. ach unit requires 4 pounds of direct materials, which cost $7 per pound. The company's olicy is to maintain direct materials inventory equal to 30% of the next month's direct naterials requirement. As of June 30 , the company has 5,880 pounds of direct materials in nventory. Prepare the direct materials budget for July