Required information Ramos Co. provides the following sales forecast and production budget for the next four months, Sales (units) Budgeted production (units) April 630 570 May 710 780 June 660 670 July 730 670 The company plans for finished goods inventory of 250 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to and each month with direct materials inventory equal to 20% of next month's production needs. Beginning direct materials inventory for April was 570 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.40 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 $9,300 per month Prepare a direct materials budget for April, May, and June. RAMOS CO. Direct Materials Budget For April, May, and June April May 570 June Budget production (units) 700 670 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