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Miami Solar manufactures solar panels for industrial use. The company budgets production of $5,000$ units $($solar panels$)$ in July and $5,500$ units in August.

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

Each unit requires $4$ pounds of direct materials, which cost $$5$ per pound. The company$$s policy is to maintain direct materials inventory equal to $20\%$ of the next month$$s direct materials requirement. As of June $30,$ the company has $4,000$ pounds of direct materials in inventory. Prepare the direct materials budget for July.