XYZ Manufacturing production budget for April: 40,000 units

Budgeted materials per unit:

Direct material A: 2 gallons per unit @ $5.00 per gallon

Direct material B: 6 lbs. per unit @ $8.00 per lb.

Budgeted materials inventory:

April 1 Direct material A: 5,000 gallons

Direct material B: 8,000 lbs.

April 30 Direct material A: 6,000 gallons

Direct material B: 8,000 lbs.

REQUIRED:

1. Direct material A purchasing budget for the month of April in gallons and dollars:

DM A _____________gallons

DM A $__________________

2. Direct material B purchasing budget for the month of April in pounds and dollars:

DM B_____________ pounds

DM B $__________________