11.31 *** Revenue and production budgets (CPA, adapted) Objective 3 Cottesloe Ltd manufactures and sells two products: Thingone and Thingtwo. In December 2018, Cottesloe Ltd's budget department gathered the following data to prepare budgets for 2019: 2019 Projected sales Product Units Price Thingone 60000 $165 Thingtwo 40000 $250 2019 Inventories in units Expected target Product 1 January 2019 31 December 2019 Thingone 20000 25000 Thingtwo 8000 9000 The following direct materials are used in the two products: Direct materials Amount used per unit Unit Thingone Thingtwo kilogram kilogram each Projected data for 2019 with respect to direct materials are as follows: Direct materials Anticipated purchase price Expected inventories 1 January 2019 Target inventories 31 December 2019 $12 32000 kg 36000 kg 29000 kg 32000 kg 6000 units 7000 units Projected direct manufacturing labour requirements and rates for 2019 are as follows: Product Hours per unit Rate per hour Thingone $12 Thingtwo 16 Manufacturing overhead is allocated at the rate of $20 per direct manufacturing labour-hour. Required Based on the preceding projections and budget requirements for Thingone and Thingtwo, prepare the following budgets for 2019: 1. revenues budget (in dollars) 2. production budget (in units) 3. direct materials purchases budget (in kilograms) 4. direct materials purchases budget (in dollars) 5. direct manufacturing labour budget (in dollars) 6. budgeted finished goods inventory at 31 December 2019 (in dollars)