Ruiz Co. provides the following sales forecast for the next four months April MayJune July 810 Sales (units) 690 770 720 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 276 units. Assume July's budgeted production is 720 units. In addition, each finished unit requires five pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 40% of next month's production needs. Beginning raw materials inventory for April was 1,444 pounds. Assume direct materials cost $4 per pound 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
Budgeted production (units) 722 units
Materials requirements per unit
Materials needed for production 5 (lbs.)
Budgeted ending inventory (Ibs.)
Total materials requirements (lbs.)
Beginning inventory (lbs.)
Materials to be purchased (Ibs.)
Cost per lb.
Total budgeted direct materials cost $ 4 $4 $ 4per lb.

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