Two products are manufactured by the TabComp Corporation: Widgets and Thingamajigs. In July 2018, the controller of TabComp, upon instructions from senior management, had the budgeting department gather the following data in order to prepare budgets for 2019: i Required x Based on the preceding projections and budget requirements for Widgets and Thingamajigs, prepare the following budgets for 2019: 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 labour budget (in dollars) 6. Budgeted finished goods inventory at December 31, 2019 (in dollars) Print Done Data Table The following direct materials are used to produce one unit of Widget and Thingamajig: Amount Used per Unit Direct Material Unit Widget Thingamajig A Kilograms 5 6 B Kilograms 3 4 Each 0 2 Projected data for 2019 with respect to direct materials are as follows: Anticipated Expected Target Inventories Direct Purchase Inventories December 31, Material Price January 1, 2019 2019 A 11 31,000 kilograms 36,000 kilograms B $ 6 27,000 kilograms 31,000 kilograms 3 7,000 units 9,000 units Print Done > i X i Data Table Data Table Projected direct manufacturing labour requirements and rates for 2019 are as follows: 2019 Projected Sales Product Units Price Product Hours per Unit Rate per Hour Widget 63,000 $ 164 3 12 Thingamajig Widget Thingamajig 47,000 $ 264 4 15 2019 Inventories in Units Target Print Done Expected January 1, 2019 Product December 31, 2019 UNILS The Total 28,000 33,000 Widget Thingamajig get 12,000 13,000 ngamajig pjected sales Print Done Requirement 1. Prepare the revenues budget (in dollars). TabComp Corporation Revenue Budget for 2019 Units Price Total Widget 63,000 $ 164 $ 10,332,000 12,408,000 Thingamajig 47,000 264 $ 22,740,000 Projected sales Requirement 2. Prepare the production budget (in units). Thingamajig 47,000 TabComp Corporation Production Budget (in units) for 2019 Widget Budgeted sales in units 63,000 Add: Target finished goods inventories, Dec. 31, 2019 33,000 Total requirements 96,000 Deduct: Finished goods inventories, Jan. 1, 2019 28,000 Units to be produced 68,000 13,000 60,000 12,000 48,000 Requirement 3. Prepare the direct material purchases budget (in quantities). (For entries with a 0 balance, make sure to enter "0" in the appropriate field.) TabComp Corporation Direct Materials Purchases Budget (in quantities) for 2019 Direct Materials A B C Direct materials to be used in production Widget Thingamajig Total Add: Target ending inventories, Dec. 31, 2019 Total requirement in units Deduct: Beginning inventories, Jan. 1, 2019 Direct materials to be purchased (units)
