Q 5 part 1

Vista Electronics, Inc. manufactures two different types of coils used in electric motors. In the fall of the current year, Erica Becker, the controller, compiled the following data. Sales forecast for 20x0 (all units to be shipped in 20x0): Product Light coil Heavy coil Units Price 68,000 $380 48,000 480 Raw-material prices and inventory levels: Expected Inventories, Desired Inventories, January 1, 20x0 December 31, 20x0 46,000 lb. 50,000 lb. Anticipated Purchase Price $ 14 Material Sheet metal Copper wire Platform 43,000 lb. 6,800 units 46,000 lb. 7,800 units 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 2 unit Direct-labor requirements and rates: Product Hours per Unit Rate per Hour Light coil $15 Heavy coil 20 Finished-goods inventories (in units): Expected January 1, 20x0 33,000 Desired December 3 1, 20x0 38,000 Product Light coil Heavy coil 10,500 11,500 Production overhead: Overhead Cost Item Purchasing and material handling Depreciation, utilities, and inspection Shipping General production overhead Activity-Based Budget Rate to co per pound of sheet metal and copper wire purchased $5.00 per coil produced (either type) $1.00 per coil shipped (either type) $3.00 per direct-labor hour Required: 1. Prepare the sales budget (in dollars) for 20x0. Sales Budget for 20x0 Total Light coils Heavy coils Projected sales $