well, I am doing direct material budget, and already have my production budget. for example for the quarter, for January I get 950, and cost for Direct material it says to be $8/unit, but it does not say the units need for production, so im confused. normally you will multiply the required production by units needed?
Yes, in order to calculate the direct material budget, you will need to know the units needed for production. Typically, you multiply the required production by the units needed per unit of production to determine the total units of direct material needed.
However, in your case, if the production budget does not mention the units needed for production, you will need to obtain that information in order to calculate the direct material budget accurately. You should reach out to the relevant department or personnel responsible for the production process to determine the units needed for each production period, such as the number of units to be produced in January.
Once you have clarified the units needed for production, you can then multiply the required production (950 units for January) by the units needed per unit of production ($8 per unit). By doing this, you will be able to calculate the total direct material cost for the given period (January).