The sales department of P. Gillen Manufacturing Company 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 used in production:

Prepare the following:
a. A production budget for March (in units).
b. A direct materials budget for the month (in units anddollars).

Transcribed Image Text:

Required Inventory Inventory Standard March 1 March 31 Cost A (one gallon per unit).500 gal 1,000 lb 1,000 gal 1,000 lb $1 per lb $2 per gal