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Use the following information for the Exercises below.

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

	April		May		June		July
Sales (units)	690		770		720		790
Budgeted production (units)	630		760		730		730

The company plans for finished goods inventory of 310 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 months production needs. Beginning direct materials inventory for April was 630 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.30 hours of direct labor at the rate of $18 per hour. The company budgets variable overhead at the rate of $22 per direct labor hour and budgets fixed overhead of $9,900 per month.

Exercise 20-8 Manufacturing: Direct materials budget LO P1

Prepare a direct materials budget for April, May, and June.