Two products are manufactured by the Fraser Corporation: Widgets and Thingamajigs. In July 2015, the controller of Fraser, upon instructions from senior management, had the budgeting department gather the following data in order to prepare budgets for 2016:

2016 Projected Sales

ProductUnitsPrice

Widget..................60,000...........$198

Thingamajig............40,000...........$300

2016 Inventories in Units

ProductExpected January 1, 2016Target December 31, 2016

Widget............................22,000......................................27,000

Thingamajig......................10,000......................................11,000

The following direct materials are used to produce one unit of Widget and Thingamajig:

Amount Used per Unit

Direct MaterialUnitWidgetThingamajig

A......................Kilograms............4.....................5

B......................Kilograms............2.....................3

C.............................Each............0.....................1

Projected data for 2016 with respect to direct materials are as follows:

AnticipatedExpectedTarget

Purchase PriceInventories,Inventories,

Direct Material January 1, 2016December 31, 2016

A...............................$14.................32,000 kilograms........36,000 kilograms

B................................$ 7.................29,000 kilograms........32,000 kilograms

C................................$ 5........................6,000 units...............7,000 units

Projected direct manufacturing labour requirements and rates for 2016 are as follows:

Hours perRate per

Product UnitHour

Widget...........2................$15

Thingamajig.....3..................19

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 2016:

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, 2016 (in dollars).