Garver Industries has budgeted the following unit sales:

2020		Units
January		10,000
February		8,000
March		9,000
April		11,000
May		15,000

The finished goods units on hand on December 31, 2019, was 2,000 units. Each unit requires 3 pounds of raw materials that are estimated to cost an average of $4 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. They also have a policy of maintaining a raw materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 8,640 pounds of raw materials on hand at December 31, 2019.

For the first quarter of 2020, prepare a production budget.

GARVER INDUSTRIES Production Budget For the Quarter Ended March 31, 2020
			January		February		March		Total
Expected unit salesCost per poundRequired production unitsDesired ending finished goods unitsTotal required unitsBeginning finished goods unitsDirect materials purchases
Required production units Direct materials purchases Cost per pound Total required units Beginning finished goods units Desired ending finished goods units Expected unit sales
Beginning finished goods units Expected unit sales Required production units Cost per pound Desired ending finished goods units Direct materials purchases Total required units
Add Less :	Required production units Cost per pound Beginning finished goods units Direct materials purchases Desired ending finished goods units Expected unit sales Total required units
Total required units Desired ending finished goods units Cost per pound Beginning finished goods units Required production units xpected unit sales Direct materials purchases

For the first quarter of 2020, prepare a direct materials budget.

GARVER INDUSTRIES Direct Materials Budget For the Quarter Ended March 31, 2020
			January		February		March		Total
Total pounds needed for production Direct materials purchases Desired ending direct materials Total materials required Units to be produced Direct materials per unit Beginning direct materials Cost per pound Total cost of direct materials purchases
Total materials required Direct materials per unit Beginning direct materials Total pounds needed for production Units to be produced Desired ending direct materials Direct materials purchases Cost per pound Total cost of direct materials purchases
Units to be produced Direct materials per unit Total pounds needed for production Cost per pound Total cost of direct materials purchases Desired ending direct materials Total materials required Beginning direct materials Direct materials purchases
Total materials requiredCost per poundDirect materials per unitTotal cost of direct materials purchasesBeginning direct materialsTotal pounds needed for productionDesired ending direct materialsDirect materials purchasesUnits to be produced
Beginning direct materialsDirect materials purchasesTotal pounds needed for productionTotal materials requiredUnits to be producedCost per poundDirect materials per unitTotal cost of direct materials purchasesDesired ending direct materials
AddLess :	Total pounds needed for productionBeginning direct materialsDesired ending direct materialsDirect materials purchasesDirect materials per unitTotal materials requiredCost per poundTotal cost of direct materials purchasesUnits to be produced
Total materials requiredTotal cost of direct materials purchasesUnits to be producedBeginning direct materialsDirect materials purchasesCost per poundDirect materials per unitTotal pounds needed for productionDesired ending direct materials
Direct materials per unitTotal cost of direct materials purchasesDirect materials purchasesCost per poundDesired ending direct materialsTotal pounds needed for productionBeginning direct materialsUnits to be producedTotal materials required
Total cost of direct materials purchasesTotal pounds needed for productionDirect materials purchasesDirect materials per unitCost per poundTotal materials requiredDesired ending direct materialsBeginning direct materialsUnits to be produced			$		$		$		$

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