1. Production Budget and Direct Materials Budget The sales department of a manufacturing company has forecast sales for September to be 35,000 units. Beginning finished goods inventory on September 1 is 6,000 units, and the finished goods inventory required on September 30 is 2,000 units. Two pounds of Material A, at a cost of $10 per pound, is required to produce each unit. The September 1 inventory of Material A is 3,000 lb and the desired September 30 inventory is 4,000 lb.

Prepare a production budget and a direct materials budget for the month of September.