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Problems 1. Scarborough Corporation manufactures and sells two products: DOne andDTwo. In July 2018, Scarborough budget department gathered the following data to prepare budgets for

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Problems 1. Scarborough Corporation manufactures and sells two products: DOne andDTwo. In July 2018, Scarborough budget department gathered the following data to prepare budgets for 2019: 2019 Projected Sales: Product Units Price DOne 60,000 $165 DTwo 40,000 $250 2019 Inventories in Units: Expected Target Product Januarv l 2019 December 31 2019 DOne 20 000 25,000 DTwo 8,000 9 000 The following direct materials are used in the two products: Amount IIsed per Unit Direct material Unit DOne DTwo A kilogram 4 5 B kilogram 2 3 C each 0 1 Projected data for 2019 with respect to direct materials are as follows: Direct Anticipated Expected Inventories Target Inventories material Purchase price Janual'v 1, 2019 December 31, 2019 A $12 32,000 kg 36,000 kg B 5 29,000 k 32,000 C 3 6,000 units 7,000 units Projected direct labour requirements and rates for 2019 are as follows: Product Hours per unit Rate per hour DOne 2 $12 D Two 3 16 Based on the preceding projections and budget requirements for DOne and DTwo, prepare the following budgets for 2019. Required: a) Sales budget b) Production budget c) Direct material purchases budget (in quantities) d) Direct material purchases budget (in dollars) e) Direct labour budget (in dollars)

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