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Use the following information for the Exercises below.

Ruiz Co. provides the following sales forecast for the next four months:

	April		May		June		July
Sales (units)	640		720		670		760

The company wants to end each month with ending finished goods inventory equal to 40% of next month's forecasted sales. Finished goods inventory on April 1 is 256 units. Assume July's budgeted production is 670 units. In addition, each finished unit requires four pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 40% of next months production needs. Beginning raw materials inventory for April was 1,075 pounds. Assume direct materials cost $6 per pound.

Exercise 7-4 Manufacturing: Direct materials budget LO P1

Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)

RUIZ CO Direct Materials Budget For April, May, and June April May June udgeted production (units) Materials requirements per unit Materials needed for production (Ibs.) Budgeted ending inventory (bs.) Total materials requirements (lbs.) Beginning inventory (lbs.) Materials to be purchased (lbs.) Cost per lb. Total budgeted direct materials cost 4 lbs. 1,075 lbs

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