Saved Ramos Co. provides the following sales forecast and production budget for the next four months. Help Save & Exit Sales (units) Budgeted production (units) April 550 490 May 630 620 June 580 590 July 650 590 The company plans for finished goods inventory of 170 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 735 pounds. Direct materials cost $3 per pound. Each finished unit requires 0.60 hours of direct labor at the rate of $21 per hour. The company budgets variable overhead at the rate of $25 per direct labor hour and budgets fixed overhead of $8,500 per month. Prepare a direct materials budget for April, May, and June. June RAMOS CO. Direct Materials Budget For April, May, and June April May Budget production (units) 490 620 Materials requirements per unit 61 6 Materials needed for production (lbs.) 2.940 3,720 Budgeted ending inventory (lbs.) 930 885 Total materials requirements (lbs.) 3,870 4,605 Beginning inventory (lbs.) Materials to be purchased (lbs.) 3,870 4,605 Materials price per pound $ 3.00 $ 3.00 $ Budgeted cost of direct materials purchases $ 11,610 $ 13,815 S 590 units 6 lbs. 3,540 lbs. 885 lbs. 4,425 lbs. 0 4,425 lbs. 3.00 13,275 8 9