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C 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 30 Sales (units) Budgeted production (units) April 640 580 May 720 June 670 680 July 740 680 710 The company plans for finished goods inventory of 260 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 580 pounds. Direct materials cost $2 per pound Each finished unit requires 0 20 hours of direct labor at the rate of $13 per hour. The company budgets variable overhead at the rate of $17 per direct labor hour and budgets fixed overhead of $9,400 per month Exercise 20-8 Manufacturing: Direct materials budget LO P1 Exercise 20-8 Manufacturing: Direct materials budget LO P1 Prepare a direct materials budget for April, May, and June -10 June ec RAMOS CO. Direct Materials Budget For April, May, and June April Budget production (units) 580 Materials requirements per unit 5 Materials needed for production (lbs.) 2,900 Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Beginning inventory (lbs.) 580 Materials to be purchased (lbs.) (580) Materials price per pound Budgeted cost of direct materials purchases May 710 5 3,550 680 units 5 lbs 3,400 lbs 0 0 0

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