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. Sales (units) Budgeted production (units) April 600 540 May 680 670 June 630 640 July 700 640 The company plans for finished goods inventory of 220 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 month's production needs. Beginning direct materials inventory for April was 540 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.60 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 $9,000 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 April May 540 June 640 units 670 IIIIIIIIII Budget production (units) Materials requirements per unit Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Materials price per pound Budgeted cost of direct materials purchases