Revenue and production budgets. (CPA, adapted) The Scarborough Corporation manufactures and sells two products: Thingone and Thingtwo. In July 2009, Scarborough’s budget department gathered the following data to prepare budgets for 2010:

The following direct materials are used in the two products:

Projected data for 2010 with respect to direct materials are as follows:

Projected direct manufacturing labor requirements and rates for 2010 are as follows:

Manufacturing overhead is allocated at the rate of $20 per direct manufacturing labor-hour.

Based on the preceding projections and budget requirements for Thingone and Thingtwo, prepare the following budgets for 2010:

1. Revenues budget (in dollars)

2. Production budget (in units)

3. Direct material purchases budget (in quantities)

4. Direct material purchases budget (in dollars)

5. Direct manufacturing labor budget (in dollars)

6. Budgeted finished goods inventory at December 31, 2010 (in dollars)

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2010 Projected Sales Product Units Price Thingone 60,000 $165 Thingtwo 40,000 S250 2010 Inventories in Units Expected Target January 1, 2010 December 31, 2010 25,000 Product Thingone Thingtwo 20,000 8,000 9,000