Required information Ramos Co. provides the following sales forecast and production budget for the next four months: Sales (units) Budgeted production (units) April 550 490 May 630 620 June 580 590 July 650 590 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 Budget production (units) 620 590 units Materials needed for production (lbs.) Total materials requirements (lbs.) 0 0 0 0 Materials to be purchased (lbs.) Materials price per pound Budgeted cost of direct materials purchases 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 490 June Budgeted production (units) 620 590 units Total labor hours needed Budgeted direct labor cost 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