Preparing production budget and direct materials budget The sales department of C. Howl...

Preparing production budget and direct materials budget

The sales department of C. Howland 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 used in production:

Prepare the following:

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

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