Miami Solar manufactures solar panels for industrial use. The company budgets production of 5,400 units (solar panels) in July and 6,000 units in August. Each unit requires 3 pounds of direct materials, which cost $6 per pound. The company's policy is to maintain direct materials inventory equal to 20% of the next month's direct materials requirement. As of June 30, the company has 3,240 pounds of direct materials in inventory. Prepare the direct materials budget for July. MIAMI SOLAR Direct Materials Budget July 5,400 Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases Budgeted units sales for month Materials cost per pound Materials required per unit (pounds) Materials to be purchased Add: Beginning materials inventory (pounds) Add: Desired ending materials inventory Less: Beginning materials inventory (pounds) Less: Desired ending materials inventory (pounds)