CHAPTER 9 SUPPLEMENTARY PROBLEMS Sales, production, direct materials, and direct labor budgets Prepare on Excel Kennewick Manufacturing Company expects a 15% increase over the 200,000 units of product VIP sold last year and a 20% increase in the 160,000 units of product ZUM sold. VIP and ZUM are herbal supplements. Budgeted raw materials and finished goods inventories for the year were as follows: Raw materials Beginning Ending X 41,400 lbs. 39,800 lbs. Y 46,000 gal. 49,000 gal. Finished goods VIP 19,400 units 18,000 units ZUM 15,000 units 16,500 units Materials and labor required in production: For one unit VIP -- 2 lbs. of X, 2 gal. of Y direct labor 2 hours at $6 per hour For one unit ZUM -- 3 lbs. of X, 2 gal. of Y direct labor 3 hours at $6 per hour Factory overhead is applied at the rate of $4 per hour of labor used Budgeted casts of raw materials: X -- $1.50 per lb. Y -- $2.25 per gal. Selling price of VIP is $60 and SUM is $75 Prepare the following: 1. A sales budget in units and dollars. 2. A production budget in units. 3. A direct materials purchases budget for products X and Y. 4. A direct labor cost budget. Determine the production cost budgeted per unit of VIP and ZUM. In Excel Spreadsheet.