Two products are manufactured by the TabComp Corporation: Widgets and Thingamajigs. In July 2021, the controller of TabComp, upon instructions from senior management, had the budgeting department gather the following data in order to prepare budgets for 2022:

Manufacturing overhead is allocated at the rate of $24 per direct manufacturing labour-hour.

Based on the preceding projections and budget requirements for Widgets and Thingamajigs, prepare the following budgets for

2022:

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, 2022 (in dollars)

Requirement 1. Prepare the revenues budget (in dollars).

TabComp Corporation
Revenue Budget for 2022
	Units	Price	Total
Widget
Thingamajig
Projected sales

Part 2

Requirement 2. Prepare the production budget (in units).

TabComp Corporation
Production Budget (in units) for 2022
		Widget	Thingamajig
Budgeted sales in units
Add: Target finished goods inventories, Dec. 31, 2022
Total requirements
Deduct: Finished goods inventories, Jan. 1, 2022
Units to be produced

Part 3

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 2022
		Direct Materials
		A	B	C
Direct materials to be used in production
Widget
Thingamajig
Total
Add: Target ending inventories, Dec. 31, 2022
Total requirement in units
Deduct: Beginning inventories, Jan. 1, 2022
Direct materials to be purchased (units)

Part 4

Requirement 4.

Prepare

the direct material purchases budget (in dollars).

TabComp Corporation
Direct Materials Purchases Budget (in dollars) for 2022
	Budgeted	Expected
	Purchases	Purchase
	(Units)	Price per Unit	Total
Direct material A
Direct material B
Direct material C
Budgeted purchases

Part 5

Requirement 5. Prepare the direct manufacturing labour budget (in dollars).

TabComp Corporation
Direct Manufacturing Labour Budget (in dollars) for 2022
	Budgeted	Direct Manufacturing
	Production	Labour-Hours	Total	Rate per
	(Units)	per Unit	Hours	Hour	Total
Widget
Thingamajig
Total

Part 6

Requirement 6. Prepare the budgeted finished goods inventory at December 31,

2022

(in dollars).

Begin by calculating finished goods for Widget. Then calculate finish goods for Thingamajig and the total budgeted finished goods. (For entries with a $0 balance, make sure to enter "0" in the appropriate field.)

TabComp Corporation
Budgeted Finished Goods Inventory
at December 31, 2022
Widget:
Direct materials costs:
A
B
C
Direct manufacturing labour costs
Manufacturing overhead costs per
direct manufacturing labour-hour
Budgeted manufacturing costs per unit
Finished goods inventory of Widget

Part 7

Thingamajig:
Direct materials costs:
A
B
C
Direct manufacturing labour costs
Manufacturing overhead costs per
direct manufacturing labour-hour
Budgeted manufacturing costs per unit
Finished goods inventory of Thingamajig
Budgeted finished goods inventory, December 31, 2022

Budget Data The following direct materials are used to produce one unit of Widget and Thingamajig: Projected data for 2022 with respect to direct materials are as follows