Ortiz Company's sales budget projects unit sales of part 198z of 10300 units in Jaunary 11, 600 units in February ,and 13200 units in March. Each unit of part 198z requires 2 pounds of materials, which cost $3 per pound. Ortiz company desires its ending raw materials inventory to equal 30% of the next month's production requirements, and its ending finished goods inventory to equal 30% of the next month's expected sales. These goals were met at Dec 31, 2010.
A:Prepare a production budget for Jan & Feb 2011.
B:Prepare a direct materials budget for Jan 2011.