Preparing production budget and materials budget LO₂ The sales department of your company has forecast sales in March to be 20,000 units. Additional information follows:

Prepare the following:

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

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

Transcribed Image Text:

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