Condor Corporation manufactures two different types of coils used in electric motors. In the fall of the current year, the controller compiled the following data.

• Sales forecast for 20x3 (all units to be shipped in 20x3):

• Raw- material prices and inventory levels:

• Use of raw material:

• Direct- labor requirements and rates:

• Finished- goods inventories (in units):

• Production overhead:
Overhead Cost Item Activity- Based Budget Rate
Purchasing and material handling.........$.50 per pound of sheet metal and copper wire purchased
Depreciation, utilities, and inspection....$ 8.00 per coil produced (either type)
Shipping.................................................$ 2.00 per coil shipped (either type)
General production overhead............... $ 6.00 per direct- labor hour

Required:
Prepare the following budgets for 20x3.
1. Sales budget (in dollars).
2. Production budget (in units).
3. Raw material purchases budget (in quantities).
4. Raw material purchases budget (in dollars).
5. Direct- labor budget (in dollars).
6. Production- overhead budget (in dollars).
(CPA,adapted)

Transcribed Image Text:

Product Units Price Light collomcee Heavy coil 60,000 40,000 $340 Expected Inventories January 1, 20x3 Desired Inventories, December 31, 20x3 Raw Material Sheet metal . Copper wire Platform... Anticipated Purchase Price $16 10 32,000 lb. 29,000 lb. 36,000 b 32,000 b 7,000 units 6,000 units Amount Used per Unit Light Coil Heavy Coil Raw Material Sheet metal Copper wire Platform 5 lb 3 Ib 1 unit 4 lb 2 lb Product Hours per Unit ate per Hour Light coll Heavy coil $15 20 Expected January 1, 20x3 20,000 8,000 Desired December 31, 20x3 25,000 9,000 Product Light coln Heay coil COll