Ruiz Co. provides the following sales forecast for the next fourmonths:
| April | | May | | June | | July | |
| Sales (units) | 620 | | 700 | | 650 | | 740 | |
|
The company wants to end each month with ending finished goodsinventory equal to 40% of next month's forecasted sales. Finishedgoods inventory on April 1 is 248 units. Assume July's budgetedproduction is 650 units. In addition, each finished unit requiresfive pounds (lbs.) of raw materials and the company wants to endeach month with raw materials inventory equal to 30% of nextmonth’s production needs. Beginning raw materials inventory forApril was 978 pounds. Assume direct materials cost $5 perpound.
Prepare a direct materials budget for April, May, and June.(Round your intermediatecalculations and final answers to the nearest whole dollaramount.)
