Ramos Company provides the following budgeted production for the next four months.Units to produceApril620MayJuneJuly750720720Each finished unit requires 5 pounds of direct materials. The company wants to end each month with direct materials inventory equalto 30% of next month's production needs. Beginning direct materials inventory for April was 930 pounds. Direct materials cost $2 perpound. Prepare a direct materials budget for April, May, and June.Units to produceMaterials needed for production (pounds)Total materials required (pounds)Materials to purchase (pounds)Materials cost per poundCost of direct materials purchasesRAMOS COMPANYDirect Materials BudgetAprilMayJune620750720 units0

Step 1:Direct materials budget is presented hereunder:…

Answered: Ramos Company provides the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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