Required information

Ramos Co. provides the following sales forecast and production budget for the next four months:

	April		May		June		July
Sales (units)	600		680		630		700
Budgeted production (units)	540		670		640		640

The company plans for finished goods inventory of 220 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 20% of next months production needs. Beginning direct materials inventory for April was 540 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.60 hours of direct labor at the rate of $12 per hour. The company budgets variable overhead at the rate of $16 per direct labor hour and budgets fixed overhead of $9,000 per month.

Prepare a direct materials budget for April, May, and June.

1. Prepare a direct labor budget. 2. Prepare a factory overhead budget for April, May, and June.

RAMOS CO. Direct Materials Budget For April, May, and June April 540 May June 640 units Budget production (units) 670 Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Materials price per pound Budgeted cost of direct materials purchases Required 1 Required 2 Prepare a direct labor budget. (Enter your direct labor hours (hrs.) per unit in two decimal places.) RAMOS CO. Direct Labor Budget For April, May, and June April May 540 June 640 units Budgeted production (units) 670 Total labor hours needed Budgeted direct labor cost Required 1 Required 2 > Required 1 Required 2 IIIIIIIIIIIII 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 Required 1 Required 2 >