Required information Use the following information for the Exercises below. Ramos Co. provides the following sales forecast and production budget for the next four months: April July 680 ay 660 June Sales (units) Budgeted production (units) 580 610 520 650 620 620 The company plans for finished goods inventory of 200 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 30% of next month's production needs. Beginning direct materials inventory for April was 780 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.40 hours of direct labor at the rate of $24 per hour. The company budgets variable overhead at the rate of $28 per direct labor hour and budgets fixed overhead of $8,800 per month. Exercise 20-8 Manufacturing: Direct materials budget LO P1 Prepare a direct materials budget for April, May, and June. RAMOS CO Direct Materials Budget For April, May, and June May June April Budget production (units) 620 units 650 520 Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Materials price per pound Budgeted cost of direct materials purchases