1 (41 marks) Apex Limited manufactures widgets. For production, each unit uses 2 kilograms of nickel, 3 kilograms of copper and 5 kilograms of iron. The company has the following beginning direct materials inventory and expects to have the following ending inventory: Beginning Inventory Target Ending inventory - Beginning inventory - Target Ending Direct Material cost Inventory expected cost Nickel Copper 300 kg's $2 per kg 500 kg's $2.50 per kg 100 kg's $3 per kg 400 kg's $3.10 per kg Iron 80 kg's $6 per kg 350 kgs $6.05 per kg The company expects to sell 40,000 widgets for $450 each. The company has a beginning inventory of 2,500 widgets at a cost of $325 per unit and has set a target ending inventory of 3,000 widgets. Direct labour costs are $25 per hour and each widget takes 7 hours to produce. Variable manufacturing overhead is $20 per hour and based on direct labour hours. Fixed manufacturing cost is estimated to be $500,000 for the period. Variable marketing costs are estimated to be $12 per unit; the company is expected to incur a marketing cost on all the units sold. The company uses the FIFO inventory costing method. Required - Prepare the following 1. The sales budget 2. Production budget in units 3. Direct materials usage budget (in quantities and dollars) 4. Direct materials purchase budget 5. The budgeted unit cost of ending finished goods inventory. 6. Budgeted ending inventory (should be the sum of the widgets and direct materials that are in ending inventory) 7. The cost of goods sold budget. 8. The budgeted income statement (ignore income taxes)