Required information

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

	April		May		June		July
Sales (units)	560		640		590		660
Budgeted production (units)	500		630		600		600

The company plans for finished goods inventory of 180 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 months production needs. Beginning direct materials inventory for April was 750 pounds. Direct materials cost $3 per pound. Each finished unit requires 0.20 hours of direct labor at the rate of $22 per hour. The company budgets variable overhead at the rate of $26 per direct labor hour and budgets fixed overhead of $8,600 per month.

Required information Ramos Co. provides the following sales forecast and production budget for the next four months: April 560 July ay June Sales (units) Budgeted production (units) 640 590 660 500 600 630 600 The company plans for finished goods inventory of 180 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 750 pounds. Direct materials cost $3 per pound. Each finished unit requires 0.20 hours of direct labor at the rate of $22 per hour. The company budgets variable overhead at the rate of $26 per direct labor hour and budgets fixed overhead of $8,600 per month. Prepare a direct materials budget for April, May, and June RAMOS CO. Direct Materials Budget For April, May, and June April May June Budget production (units) 600 units 500 630 Materials requirements per unit Materials needed for production (lbs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Beginning inventory (lbs.) Materials to be purchased (lbs.) 0 0 0 10 Materials price per pound Budgeted cost of direct materials purchases