Sales forecast:

Product

Light coil

Heavy coil

Units

60 000

40 000

Price

$130

$190

11

Required:

Prepare the following budgets;

1. sales budget (in dollars)

2. production budget (in units)

3. direct material purchases budget (in quantities)

4. direct material purchases budget (in dollars)

5. direct labour budget (in dollars)

6. manufacturing overhead budget (in dollars).

P9.37 (append, Sales, production and purchases budgets; activity based overhead: manufacturer George ud manufactures and sells two different types of colls used in electric motors. In September, Jessica L09.11 Martin, the management accountant, compiled the following data for the upcoming annual budget Use of direct material Direct material Sheet metal Copper wire Platform Light coll 4 kilograms 2 kilograms Amount used per unit Heavy coll 5 kilograma 3 kilograma 1 unit Raw material prices and Inventory levels Raw material Sheet metal Copper wire Platform Anticipated purchase price 38 35 33 Expected Inventories 1 January 32 000 kilograma 29 000 kilograma 6000 unies Desired Inventories 21 December 36 000 kilograms 32 000 kilograms 7000 unis Direct lobour requirements and rates Hours per unit Product Light coll Heavy coil Rate per hour $30 540 Manufacturing overhead Activity Cost per unit of activity driver Material handling Sheet metal and copper wire 50.30 per kg of ww material purchased Platforma 30.10 per un purchased Machine related 51.50 per machine hour Shipping $2.00 per ceilalipped Central manufacturing overhead 31.20 per direct labour how * 000 forind 200 000 for heavy Finished goods inventories (in units): Product Expected 1 January Desire 31 December 20 000 25 000 9000 8000 Henry call Light cold