Budgeting - Revenues, Production, and Purchases Budget

• Trendy Toys Pty Ltd Manufactures a variety of dolls and teddy bears. One of the most popular toys is called Big Bear and the budgeted sales in 2021 are 15,000 units. Trendy Toy's target ending inventory is 5,500 units and its beginning inventory is 2,000 units.
• The company's budgeted selling price to its distributors and dealers is $75.50 per bear.
• Trendy Toys Pty Ltd buys all its fur fabric from an outside supplier. Each bear uses 1.5m of fur fabric and the company's target ending inventory is 2,200 metres, and its beginning inventory is 1,500 metres. The budgeted purchase price is $12.50 per metre.

Required:

1. Calculate the budgeted revenues in dollars

Sales Budget

2. Calculate the number of teddy bears to be produced

Production Budget

3. Calculate the budgeted purchases of fabric in metres and dollars.

Direct Materials Purchases Budget

• Show calculations!