Find direct materials budget for the month

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The sales department C. Coles Manufacturing Co. has forecast sales in March to be 20,000 units. Additional information follows:

Finished Goods inventory, March 1...........................3,000 units

Finished Goods inventory required March 31................1,000 units

Materials in production:

                                         Inventory        Required inventory

                                          March 1           March 31                     Standard Cost

A (one gallon per unit)          500 gal            1,000 gal                     $2 per gal

B (one pound per unit)          1,000 gal         1,000 lbs                      $1 per lb

Prepare the following:

a. A production budget for March (in units).

b. A direct materials budget for the month (in units and dollars).

Reference no: EM13944641

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