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 600 540 680 670 June 530 July 700 640 640 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 22-8 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 540 May June Budget production (units) 670 640 units Materials needed for production (lbs.) Total materials requirements (lbs) 0 0 0 Materials to be purchased (lbs) Materials price per pound Budgeted cost of direct materials purchases