King Tire Co.s budgeted unit sales for the year 2020 were:

Passenger-car tires 120,000 Truck tires 25,000

The budgeted selling price for truck tires was $200 per tire, and for passenger car tires it was $65 per tire. The beginning finished goods inventories were expected to be 2,000 truck tires and 5,000 passenger tires, for a total cost of $326,478, with desired ending inventories at 2,500 and 6,000, respectively, with a total cost of $400,510. There was no anticipated beginning or ending work-in-process inventory for either type of tire. The standard materials quantities for each type of tire were as follows:

	Truck	Passenger Car
Rubber	30 pounds	10 pounds
Steel belts	4 pounds	1.5 pounds

The purchase prices of rubber and steel were $2 and $3 per pound, respectively, same as they were in 2019. The desired ending inventories for rubber and steel were 60,000 and 6,000 pounds, respectively. The estimated beginning inventories for rubber and steel were 75,000 and 7,000 pounds, respectively. The direct labor hours required for each type of tire were as follows:

	Molding Department	Finishing Department
Truck tire	0.25	0.15
Passenger car tire	0.10	0.05

The direct labor rate for each department is as follows:

Molding Department $15 per hour Finishing Department $13 per hour

Budgeted factory overhead costs for 2020 were as follows:

Indirect Materials	$198,500
Indirect Labor	213,200
Depreciation of Building and Equipment	157,500
Power and Light	122,900
Total	$692,100

Required:

Prepare each of the following budgets for King for the year ended December 31, 2020:

1. Sales Budget
2. Production Budget
3. Direct Material Usage Budget
4. Direct Material Purchase Budget
5. Direct Labor Budget
6. Cost of Goods Sold Budget