1. Scarborough Corporation manufactures and sells two products: D-One and D-Two. In July 2018, Scarborough budget department gathered the following data to prepare budgets for 2019:

2019 Projected Sales:

Product / Units / Price

D-One / 60,000 / $165

D-Two / 40,000 / $250

2019 Inventories in Units:

Expected Target

Product / January 1, 2019 / December 31, 2019

D-One / 20,000 / 25,000

D-Two / 8,000 / 9,000

The following direct materials are used in the two products:

Amount Used per Unit

Direct material / Unit / D-One / D-Two

A / kilogram / 4 / 5

B / kilogram / 2 / 3

C / each / 0 / 1

Projected data for 2019 with respect to direct materials are as follows:

Direct material /,Anticipated Purchase price /Expected Inventories January 1, 2019 /Target Inventories December 31, 2019

A/ $12,/ 32,000 kg,/ 36,000 kg

B / $5 /,29,000 kg /,32,000 kg

C /$3,/ 6,000 units /,7,000 units

Projected direct labour requirements and rates for 2019 are as follows:

Product / Hours per unit /Rate per hour

D-One / 2 / $12

D- Two/ 3 / $16

Based on the preceding projections and budget requirements for D-One and D-Two, prepare the following budgets for 2019.

Required:

a) Sales budget

b) Production budget

c) Direct material purchases budget (in quantities)

d) Direct material purchases budget (in dollars)

e) Direct labour budget (in dollars)