E7-2 Production budget and direct materials budget The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 20,000 units. Additional information follows: Finished goods inventory, March 1..... Finished goods inventory required, March 31. Materials used in production: 3,000 units 1,000 units Required Inventory Inventory Standard March 1 March 31 Cost A lone gallon per unit).. 500 gal 1,000 gal $2 per gal B (one pound per unit). 1,000 lb 1,000 lb $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)