Vista Electronics, Incorporated, 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	Units	Price
Light coil	53,000	$ 230
Heavy coil	33,000	330

Raw-material prices and inventory levels:

Raw Material	Expected Inventories, January 1, 20x0	Desired Inventories, December 31, 20x0	Anticipated Purchase Price
Sheet metal	31,000	Pound	35,000	Pound	$ 15
Copper wire	28,000	Pound	31,000	Pound	9
Platform	5,300	units	6,300	units	5

Use of raw material:

Raw Material	Amount Used per Unit
Light Coil	Heavy Coil
Sheet metal	6	Pound	7	Pound
Copper wire	4	Pound	5	Pound
Platform			1	unit

Direct-labor requirements and rates:

Product	Hours per Unit	Rate per Hour
Light coil	6	$ 10
Heavy coil	8	15

Finished-goods inventories (in units):

Product	Expected January 1, 20x0	Desired December 31, 20x0
Light coil	18,000	23,000
Heavy coil	7,000	8,000

Production overhead:

Overhead Cost Item	Activity-Based Budget Rate
Purchasing and material handling	$ 0.90	per pound of sheet metal and copper wire purchased
Depreciation, utilities, and inspection	$ 8.00	per coil produced (either type)
Shipping	$ 2.00	per coil shipped (either type)
General production overhead	$ 6.00	per direct-labor hour

PR 9-39 (Algo) Part 1: Prepare the sales budget

Required:

1. Prepare the sales budget (in dollars) for 20x0.

2. Prepare the production budget (in units) for 20x0.

3. Prepare the raw material purchases budget (in quantities) for 20x0.

4. Prepare the raw material purchases budget (in dollars) for 20x0.

5. Prepare the direct-labor budget (in dollars) for 20x0.

6. Prepare the production-overhead budget (in dollars) for 20x0.