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Required information Ramos Co. provides the following sales forecast and production budget for the next four months: Sales (units) Budgeted production (units) April 500 442

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Required information Ramos Co. provides the following sales forecast and production budget for the next four months: Sales (units) Budgeted production (units) April 500 442 May 580 570 June 530 544 July 600 540 The company plans for finished goods inventory of 120 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 663 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.50 hours of direct labor at the rate of $16 per hour. The company budgets variable overhead at the rate of $20 per direct labor hour and budgets fixed overhead of $8,000 per month. Prepare a direct materials budget for April, May, and June. May June 544 units 570 RAMOS CO. Direct Materials Budget For April, May, and June April Budget production (units) 442 Materials requirements per unit Materials needed for production (lbs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Beginning inventory (lbs.) Materials to be purchased (lbs.) 0 Materials price per pound Budgeted cost of direct materials purchases 0 0 0 Required 1 Required 2 Prepare a direct labor budget for April, May, and June. (Enter your direct labor hours (hrs.) per unit in two decimal places.) RAMOS CO. Direct Labor Budget For April, May, and June April May 442 570 June Budgeted production (units) 544 units Total labor hours needed Budgeted direct labor cost Required Required 2 > Required 1 Required 2 Prepare a factory overhead budget for April, May, and June. RAMOS CO. Factory Overhead Budget For April, May, and June April May June Total labor hours needed Budgeted variable overhead Budgeted fixed overhead Total budgeted factory overhead

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