Required information Ramos Co. provides the following sales forecast and production budget for the next four months. Sales (units) Budgeted production (units) April 600 540 May 680 670 June 630 640 July 700 640 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 month's 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. RAMOS CO. Direct Materials Budget For April, May, and June April May 540 June 640 units 670 Budget production (units) Materials requirements per unit Materials needed for production (lbs.) Materials requirements per unit Total materials requirements (lbs.) 0 0 Materials to be purchased (lbs.) Materials price per pound Budgeted cost of direct materials purchases Ramos Co. provides the following sales forecast and production budget for the next four months. Sales (units) Budgeted production (units) April 600 540 May 680 670 June 630 640 July 700 640 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 month's production needs. Beginning direct materials inventory for April was 540 pounds. Direct materials cost $2 per e d unit requires 5 U end each month with direct materiale m S production needs. Beginning directo 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 1. Prepare a direct labor budget for April, May, and June. 2. Prepare a factory overhead budget for April, May, and June. Complete this question by entering your answers in the tabs below. 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 540 670 June 640 units Budgeted production (units) Direct labor hours per unit (hrs.) Total labor hours needed Direct labor hours per unit (hrs.) Budgeted direct labor cost Ramos Co. provides the following sales forecast and production budget for the next four months. Sales (units) Budgeted production (units) April 600 540 May 680 670 June 630 640 July 700 640 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 month's 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. 1. Prepare a direct labor budget for April, May, and June. 2. Prepare a factory overhead budget for April, May, and June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a factory overhead budget for April, May, and June. May June RAMOS CO. Factory Overhead Budget For April, May, and June April Total labor hours needed Variable factory overhead rate per direct labor hr. Budgeted variable overhead Budgeted fixed overhead Total budgeted factory overhead
