24. The Cat & Company Corporation manufactures and sells two products: Thingone and Thingtwo. In July 2013, the corporations budget department gathered the following data to prepare budgets for 2014:

2014 Projected Sales:

Product Units Price

Thingone 62,000 units $172

Thingtwo 46,000 units $264

2014 Projected Inventory in Units:

Product January 1, 2014 December 31,2014

Thingone 21,000 26,000

Thingtwo 13,000 14,000

The following direct materials are used in the two products

Amount Used per Unit

Direct Material Unit Thingone Thingtwo

A pound 5 6

B pound 3 4

C each 0 2

Projected data for 2014 for direct materials are:

Anticipated Expected Inventories Expected Inventories

Direct Material Purchase Price January 1,2014 December 31, 2014

A $11 37,000 lb. 40,000 lb.

B $6 37,000 lb. 35,000 lb.

C $5 10,000 units 12,000 units

Projected direct manufacturing labor requirements and rates for 2014 are:

Product Hours per Unit Rate per Hour

Thingone 3 $11

Thingtwo 4 $14

Manufacturing overhead is allocated at the rate of $19 per direct manufacturing labor-hour. Based on the preceding projections and budget requirements for Thingone and Thingtwo, answer the following questions:

1. What is the total projected revenue in dollars?
2. What are the production requirements for each product?
3. What is the direct material purchases budget in quantities?
4. What is the direct material purchases budget in dollars?
5. What is the direct manufacturing labor budget in dollars?
6. What is the budgeted finished goods inventory at December 31,2014 in dollars?