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Scarborough Corporation manufactures and sells two products: D-One and D-Two. In July 2018, Scarborough budget department gathered the following data to prepare budgets for 2019:
Scarborough Corporation manufactures and sells two products: D-One and D-Two. In July 2018, Scarborough budget department gathered the following data to prepare budgets for 2019: 2019 Projected Sales: Product D-One D-Two Units 60,000 40,000 Price $165 $250 2019 Inventories in Units: Product D-One D-Two Expected Target January 1, 2019 20,000 8,000 December 31, 2019 25,000 9,000 The following direct materials are used in the two products: Amount Used per Unit Direct material Unit D-One D-Two 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 January 1, 2019 December 31, 2019 $12 32,000 kg 36.000 kg B 5 29,000 kg 32,000 kg 3 6,000 units 7,000 units Projected direct labour requirements and rates for 2019 are as follows: Hours per unit Product D-One D-Two Rate per hour $12 16 3 Based on the preceding projections and budget requirements for D-One and D-Two, 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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