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

Condor 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 55,000 $ 250
Heavy coil 35,000 350

Raw-material prices and inventory levels:

Raw Material Expected Inventories January 1, 20x3 Desired Inventories, December 31, 20x3 Anticipated Purchase Price
Sheet metal 33,000 lb. 37,000 lb. $ 14
Copper wire 30,000 lb. 33,000 lb. 7
Platform 5,500 units 6,500 units 3

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 per Unit Rate per Hour
Light coil 4 $ 10
Heavy coil 6 15

Finished-goods inventories (in units):

Product Expected January 1, 20x3 Desired December 31, 20x3
Light coil 20,000 25,000
Heavy coil 8,000 9,000

Production overhead:

Overhead Cost Item Activity-Based Budget Rate
Purchasing and material handling $ 0.50 per pound of sheet metal and copper wire purchased
Depreciation, utilities, and inspection $ 6.00 per coil produced (either type)
Shipping $ 2.00 per coil shipped (either type)
General production overhead $ 4.00

per direct-labor hour

Prepare the sales budget (in dollars) for 20x3.
Sales Budget for 20x3
Total
Light coils
Heavy coils
Projected sales $0

Prepare the production budget (in units) for 20x3.
Production Budget (in units) for 20x3
Light Coils Heavy Coils
Projected sales
Total requirements 0 0
Production required (units) 0 0

Prepare the raw material purchases budget (in quantities) for 20x3.

Raw Material Purchases Budget (in Quantities) for 20x3
Raw Material
Sheet Metal Copper Wire Platform
Light coils
Heavy coils
Production requirements 0 0 0
Total requirements 0 0 0
Purchase requirements (units) 0 0 0

Prepare the raw material purchases budget (in dollars) for 20x3.

Raw Material Purchases Budget for 20x3
Raw Material Raw Material Required (units) Anticipated Purchase Price Total
Sheet metal
Copper wire
Platforms
Total $0

Prepare the direct-labor budget (in dollars) for 20x3

Direct-Labor Budget for 20x3
Projected Production (units) Hours per Unit Total Hours Rate Total Cost
Light coils
Heavy coils
Total $0

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