Required information

Use the following information for the Exercises below.

Ruiz Co. provides the following sales forecast for the next four months:

	April		May		June		July
Sales (units)	530		610		560		650

The company wants to end each month with ending finished goods inventory equal to 30% of next month's forecasted sales. Finished goods inventory on April 1 is 159 units. Assume July's budgeted production is 560 units. In addition, each finished unit requires six pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next months production needs. Beginning raw materials inventory for April was 997 pounds. Assume direct materials cost $3 per pound.

Exercise 7-4 Manufacturing: Direct materials budget LO P1

Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)

RUIZ CO.
Direct Materials Budget
For April, May, and June
	April	May	June
Budgeted production (units)				units
Materials requirements per unit
Materials needed for production (lbs.)
Budgeted ending inventory (lbs.)
Total materials requirements (lbs.)
Beginning inventory (lbs.)	997			lbs.
Materials to be purchased (lbs.)
Cost per lb.	$3	$3	$3	per lb.
Total budgeted direct materials cost