Prepare a production budget

Prepare a direct materials budget

Monty Industries has budgeted the following unit sales: The finished goods units on hand on December 31,2021 was 2,200 units. Each unit of finished goods requires 2 pounds of direct materials that are estimated to cost an average of 55 per pound. It is the compary's policy to maintain a finished goods imventory at the end of each month equal to 20 s of next month's antichated seles. The company also has a policy of malntaining a dir sct materials inventery at the end of each month equal to 30 sis of the pounds nesded for the followingmonth's production. There were 6.240 pounds of direct materials on hand at December 31.2021 (a) For the first quarter of 2022. propare a production budpet