Based on the following data, prepare a Production Budget and a Direct Materials Budget.

You produce two products - Product X and Product Y. Forecasted sales are 40,000 units. Materials needed for production are 20,000 gallons for Product X and 20,000 gallons for Product Y. The beginning finished goods inventory is 6000 units. The ending finished goods inventory is 2000 units. Relevant data for Product X: Beginning Inventory, 1000 gallons; Ending Inventory, 2000 gallons; Standard Cost: $2 per gallon. Relevant data for Product Y; Beginning Inventory, 2000 gallons; Ending Inventory, 2000 gallons; Standard Cost: $1 per gallon.