Two products are manufactured by the Burlington Northern Corporation Widget
Two products are manufactured by the Burlington Northern Corporation: Widget and Thingamajig. In July 2013, the controller of Burlington Northern, upon instructions from senior management, had the budgeting department gather the following data in order to prepare budgets for 2014:
The following direct materials are used to produce one unit of Widget and Thingamajig:
Projected data for 2014 with respect to direct materials are as follows:
Projected direct manufacturing labour requirements and rates for 2014 are as follows:
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 2014:
1. Revenue budget (in dollars).
2. Production budget (in units).
3. Direct materials purchases budget (in quantities).
4. Direct materials purchases budget (in dollars).
5. Direct manufacturing labour budget (in dollars).
6. Budgeted finished goods inventory at December 31, 2014 (in dollars).
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