Actual sales in 2020 were 1,800 rings and 2,500 necklaces. On 12/31/2020, the finished goods inventory account contained 87 rings at a cost of $200 per ring and 120 necklaces at a cost of $285 per necklace. On 12/31/2020, the direct materials inventory account contained 2,800 grams of gold at a cost of $30 per gram and 910 ounces of silver at a cost of $25 per ounce.

• Sales of rings are expected to decrease by 15% and sales of necklaces are expected to increase by 20%, as compared to the 2020 unit sales amounts

• The rings are expected to sell for $400 each and the necklaces are expected to sell for $525 each

• The target ending finished goods inventory (in units) for each product is expected to equal 10% of its budgeted sales for the year

• Producing one ring requires 6 grams of gold and 0.75 ounces of silver and producing one necklace requires 9 grams of gold and 0.5 ounces of silver

• Gold is expected to cost $32 per gram and silver is expected to cost $28 per ounce

• Gross margin is expected to be 40% of budgeted revenues for the year

• Selling costs are expected to include $83,000 for packaging, $65,000 for marketing, and $16.95per unit sold for sales commissions and shipping

• Administrative costs= $190,000 for salaries, $140,000 for rent, and $4.60 per unit sold for office support costs

• FIFO is used

Prepare the production budget, the direct materials usage budget and the budgeted income statement in dollars for 2021.