Required information Ramos Co provides the following sales forecast and production budget for the next four months. April June July 580 Sales (unita) Budgeted production unite 550 490 630 620 650 590 596 The company plans for finished goods Inventory of 170 units at the end of June. In addition, each finished unit requires 6 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 25% of next month's production needs. Beginning direct materials inventory for April was 735 pounds. Direct materials cost $3 per pound. Each finished unit requires 0.60 hours of direct labor at the rate of $21 per hour. The company budgets variable overhead at the rate of $25 per direct labor hour and budgets fixed overhead of $8,500 per month Prepare a direct materials budget for April, May, and June RAMOS CO Direct Materials Budget For April, May, and June April 490 May June 500 units 620 Budget production (units) Materials needed for production (lbs) Total materials requirements (lbs) Materials to be purchased (lbs) Materials price per pound Budgeted cost of direct materials purchases