Production and Direct Materials Budget Chandler Manufacturing Company makes two products: widgets and gidgets. The following information is available on May 1:

a. Direct materials needed to make a widget: six units of X, three units of Y. Direct materials needed to make a gidget: two units of X, six units of Y.

b. Number of units available at beginning of May:

c. Expected sales during May:

d. Desired levels of ending inventory:

e. Cost of direct materials:

Chandler has a $1,300 balance in accounts payable on May 1 and expects to pay for half of its May purchases by the end of the month. All accounts are paid in full within 30 days.
Required:
Prepare a production budget and a direct materials budget for Chandler Company for the month of May.

Transcribed Image Text:

Direct material X Direct material Y Finished widgets Finished gidgets. 72 units 43 units 12 15