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.
REQUIRED
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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2014 Projected Sales Units 60,000 40,000 Product Price Widget Thingamajg $198 $300 2014 Inventories in Units Expected January 1, 2014 22,000 10,000 Target December 31, 2014 27,000 11,000 Product Widget Thingamajig Amount Used per Unit Direct Material Unit Widget Thingamajig Kilograms Kilograms Each Expected Inventories, January 1, 2014 Target Inventories Anticipated Purchase Price $14 S 7 S 5 Direct Material December 31, 2014 32,000 kilograms 29,000 kilograms 6,000 units 36,000 kilograms 32,000 kilograms 7,000 units Hours per Unit Rate per hour Product Widget Thingamajig S15 $19