South Company prepared the following figures as a basis for its annual budget:

Estimated inventories at the beginning and desired quantities at the end of the year are:

Direct labor cost is budgeted at $8 per hour and variable factory overhead at $6 per hour of direct labor. Fixed factory overhead, estimated to be $40,000, is not allocated to specific products in developing the manufacturing budget for internal management use.
Required:
(1) Prepare a production budget.
(2) Prepare a purchases budget for each material.
(3) Prepare a budget of manufacturing costs, by product and in total.

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Required Required per Unit 2 Units of Estimated Material A Material B Expected Sales Price per Unit Product Salesper Unit 80,000 40,000 (in kilograms) (in kilograms) Tribolite.. Polycal Powder X $1.50 2.00 80 2 100.000 Beginning Inventory Ending Inventory Purchase Price per Material (in kilograms) (in kilograms) Kilogram $.20 -10 9 500 12 000 15 000 11 000 Units in Beginning Inventory Units in Ending Inventory 6,000 2,000 8,000 Direct Labor Hours per 1,000 Units Product Tribolite. Polycal.... Powderx..10 5,000 4,000 50.0 125.0 10,000 12.5