unit cost of materials are $2

P. 4 Part 4. Prepare a Production Budget and a Direct Materials Budget ( 14 Points) The controller of the Sirap Co. forecasts sales for the month of May at 40,000 units. The additional data is as follows: Finished goods inventory May 1 at 6,000 units Finished goods inventory May 31 at 2,000 units The only material used in production is Xylo. 2 pounds per unit of production are needed. Inventory of Xylo on May 1 at 2000 pounds and required inventory May 31 at 4000 pounds. Required: A) Prepare a production budget for May in Units B) Prepare a direct materials budget for May in units and in Dollars