Chandler Manufacturing Company makes two products: widgets and gidgets. The following information is available on May 1:

a. Direct materials needed to make a widget: six units of $\mathbf{X}$, three units of $\mathrm{Y}$. Direct materials needed to make a gidget: two units of $X$, six units of $Y$.

b. Number of units available at beginning of May:

Direct material $X$ 72 units Direct material $Y$. . . . . . . . . . . . 43 units Finished widgets . . . . . . . . . . . 12 Finished gidgets. . . . . . . . . . . . 15

c. Expected sales during May:

Widgets $

Gidgets . . . . . . . . . . . . . . . . . . . . 95

d. Desired levels of ending inventory:

Direct material $X$. . . . . . . . . 70 units Direct material Y . . . . . . . . . . . 35 units Widgets . . . . . . . . . . . . . . . . . 11 Gidgets . . . . . . . . . . . . . . . . 13

e. Cost of direct materials:

Direct material $X$. . . . . . . . $\$ 3$ per unit Direct material Y.......... $\$ 2$ per unit Required:

Prepare a production budget and a direct materials usage and purchases budget for Chandler Company for the month of May.