Required information

Use the following information for the Quick Study below. $($Algo$)$

Miami Solar manufactures solar panels for industrial use. The company budgets production of $4,700$ units $($solar panels$)$ in July and $4,900$ units in August.

QS $20-9($Algo$)$ Manufacturing: Direct materials budget LO P$1$

Each unit requires $2$ pounds of direct materials, which cost $$5$ per pound. The company's policy is to maintain direct materials inventory equal to $40\%$ of the next month's direct materials requirement. As of June $30,$ the company has $3,760$ pounds of direct materials in inventory. Prepare the direct materials budget for July.

$\backslash$table$[[$MIAMI SOLAR$],[$Direct Materials Budget,$],[$Units to produce,$4,700],[,],[$Materials needed for production $($pounds$),],[,],[$Total materials required $($pounds$),],[,],[$Materials to purchase $($pounds$),],[,],[$Cost of direct materials purchases,$]]$