=+10-30 KKK Revenue and production budgets (CPA, adapted) OBJECTIVE 3 Cottesloe Ltd manufactures and sells two products: Thingone and Thingtwo. In July 2014, Cottesloe Ltd’s budget department gathered the following data to prepare budgets for 2015:

2015 Projected sales Product Units Price Thingone 60 000 $165 Thingtwo 40 000 $250 2015 Inventories in units Expected target Product 1 January 2015 31 December 2015 Thingone 20 000 25 000 Thingtwo 8 000 9 000 The following direct materials are used in the two products:

Amount used per unit Direct materials Unit Thingone Thingtwo A kilogram 4 5 B kilogram 2 3