Preparing production budget and direct materials budget}

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

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Finished goods inventory, March 1 Finished goods inventory required, March 31 Materials used in production: A (one gallon per unit)... B (one pound per unit) 3,000 units 1,000 units Inventory Required Inventory March 1 March 31 Standard Cost 500 gal. 1,000 gal. $2 per gal. 1,000 lbs. 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).