WIC CACICISes below. Ramos Co. provides the following sales forecast and production budget for the next four months April 500 442 Sales (units) Budgeted production (units) May 580 570 June 530 544 July 600 540 The company plans for finished goods inventory of 120 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 30% of next month's production needs. Beginning direct materials inventory for April was 663 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.50 hours of direct labor at the rate of $16 per hour. The company budgets variable overhead at the rate of $20 per direct labor hour and budgets fixed overhead of $8,000 per month Exercise 07-8 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 June Required information RAMOS CO. Direct Materials Budget For April, May, and June April May L 442 Budget production (units) June 544 units 570 .....................M D Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Materials price per pound Budgeted cost of direct materials purchases