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6-30 Revenue and production budgets. (CPA, adapted) The Scarborough Corporation manufactures sells two products: Thingone and Thingtwo. In July 2011, Scarborough's budget department gathered following data to prepare budgets for 2012: 2012 Projected Sales Product Thingone Thingtwo Units 60,000 40,000 Price $165 $250 ASSIGNMENT MATE 2012 Inventories in Units Product Thingone Thingtwo Expected Target January 1, 2012 December 31, 2012 20,000 25,000 8,000 9,000 The following direct materials are used in the two products: Direct Material A B Amount Used per Unit Unit Thingone Thingtwo pound 4 5 pound 2 3 each 0 1 Projected data for 2012 with respect to direct materials are as follows: Direct Material A B C Anticipated Purchase Price $12 5 3 Expected Inventories January 1, 2012 32,000 lb. 29,000 lb. 6,000 units Target Inventories December 31, 2012 36,000 lb. 32,000 lb. 7,000 units Projected direct manufacturing labor requirements and rates for 2012 are as follows: Product Thingone Thingtwo Hours per Unit 2 3 Rate per Hour $12 16 Required Manufacturing overhead is allocated at the rate of $20 per direct manufacturing labor-hour. preceding projections and budget requirements for Thingone and Thingtwo, prepare the fol- lowing budgets for 2012: 1. Revenues budget (in dollars) 2. Production budget (in units) 3. Direct material purchases budget (in quantities) 4. Direct material purchases budget (in dollars) 5. Direct manufacturing labor budget (in dollars) 6. Budgeted finished goods inventory at December 31, 2012 in dollars)