A Corporation manufactures two different types of coils used in electric motors. In the fall of the current year, the controller compiled the following data.

Sales forecast for 20x3 (all units to be shipped in 20x3):

Product	Units	Price
Light coil............................................................................	60,000	$130
Heavy coil .........................................................................	40,000	190

Raw-material purchase prices and inventory levels:

Expected Inventories Desired Inventories Forecasted Raw Material 1/1/20x3 12/31/20x3 Price

Sheet metal ...................................... 32,000 lb. 36,000 lb. $16

Copper wire...................................... 29,000 lb. 32,000 lb. 10

Platform .......................................... 6,000 units 7,000 units 6

Use of raw material:

Amount Used per Unit

Raw Material Light Coil Heavy Coil

Sheet metal ................................ 4 lb. 5 lb.

Copper wire ............................... 2 lb. 3 lb.

Platform .......................................... 1 unit

Direct-labor requirements and rates:

Product Hours/Unit Rate/Hour

Light coil ....................................... 4 $15

Heavy coil ..................................... 6 20

Finished goods inventories (in units):

Product	Expected 1/1/20x3	Desired 12/31/20x3
Light coil ...............................	20,000	25,000
Heavy coil ...............................	8,000	9,000

Manufacturing overhead:

Overhead Cost Item	Activity-Based Budget Rate
Purchasing and material handling ........	$.50 per pound of sheet metal and copper wire purchased
Depreciation, utilities and inspection ....	$8.00 per coil produced (either type)
Shipping .........................................	$2.00 per coil shipped (either type)
General manufacturing overhead .........	$6.00 per direct-labor hour

Instructions: Prepare the following budgets for 20x3.

1. Production budget (in units).

2. Raw material purchases budget (in quantities).

3. Raw material purchases budget (in dollars).

4. Direct-labor budget (in dollars).

5. Manufacturing-overhead budget (in dollars).