The sales department C. Coles Manufacturing Co. has forecast sales in March to be 20,000 units.

The sales department C. Coles Manufacturing Co. has forecast sales in March to be 20,000 units. Additional information follows:

Finished Goods inventory, March 1………………………3,000 units

Finished Goods inventory required March 31…………….1,000 units

Materials in production:

                                                                        Required

Inventory        inventory

March 1           March 31                     Standard Cost

A (one gallon per unit)            500 gal                        1,000 gal                     $2 per gal

B (one pound per unit)            1,000 gal         1,000 lbs                      $1 per lb

Prepare the following:

a. A production budget for March (in units).

b. A direct materials budget for the month (in units and dollars).