1 - Manufacturing Budget The Korara Company manufactures and sells two products, Gadget 1 and Gadget 2. The following data has been gathered for the year ending 30 June 2017: Product Project Sales Inventory in Units Units Price Opening Closing Gadget 1 7,150 $130 3,000 2,075 Gadget 2 4,350 $125 825 1,025 To produce one unit of Gadget 1 and Gadget 2, the following materials are used: Raw Material Unit Gadget 1 Gadget 2 A kg 2.50 3 B kg 2 3 C each 1 2 Projected data in respect of raw materials are as follows: Raw Material Cost Opening Inventory Closing Inventory A $5.50 3,250 kg 3,500 kg B $4.25 3,000 kg 3,200 kg C $6.25 700 ea 500 ea Projected data in respect of direct labour rates are as follows: Product Hours per unit Rate per hour Gadget 1 4.50 $13.50 Gadget 2 3.00 $15.25 Overhead is applied at the rate of $5.50 per direct labour hour. Required: Prepare the following budgets for year ending 30 June 2017 as per company policies and procedures: a) Sales Budget; b) Production Budget; c) Raw Materials Usage Budget; d) Raw Materials Purchases Budget (in units and dollars); e) Direct Labour