Ramos Company provides the following budgeted production for the next four months. July April May 490 June 620 590 590 Units to produce Each finished unit requires 6 pounds of direct materials. The company wants to end each month with direct materials inventory equal to 25% of next month's production needs. Beginning direct materials inventory for April was 735 pounds. Direct materials cost $3 per pound. Prepare a direct materials budget for April, May, and June. Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases RAMOS COMPANY Direct Materials Budget April 490 May 620 June 590 units 0

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...
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Ramos Company provides the following budgeted production for the next four months.
July
April May
490
June
620 590
590
Units to produce
Each finished unit requires 6 pounds of direct materials. The company wants to end each month with direct materials inventory equal
to 25% of next month's production needs. Beginning direct materials inventory for April was 735 pounds. Direct materials cost $3 per
pound. Prepare a direct materials budget for April, May, and June.
Units to produce
Materials needed for production (pounds)
Total materials required (pounds)
Materials to purchase (pounds)
Materials cost per pound
Cost of direct materials purchases
RAMOS COMPANY
Direct Materials Budget
April
490
May
620
June
590 units
0
Transcribed Image Text:Ramos Company provides the following budgeted production for the next four months. July April May 490 June 620 590 590 Units to produce Each finished unit requires 6 pounds of direct materials. The company wants to end each month with direct materials inventory equal to 25% of next month's production needs. Beginning direct materials inventory for April was 735 pounds. Direct materials cost $3 per pound. Prepare a direct materials budget for April, May, and June. Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases RAMOS COMPANY Direct Materials Budget April 490 May 620 June 590 units 0
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