Two products are manufactured by the Fraser Corporation: Widgets and Thingamajigs. In July 2018, the controller of Fraser, upon instructions from senior management, had the budgeting department gather the following data in order to prepare budgets for 2019:

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

Projected data for 2019 with respect to direct materials are as follows:

Projected direct manufacturing labour requirements and rates for 2019 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 2019:

1. Revenue budget (in doll ars).

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, 2019 (in dollars).

Transcribed Image Text:

2019 Projected Sales Price Product Units Widget 60,000 $198 Thingamajig 40,000 $300 2019 Inventories in Units Expected January 1, 2019 Target December 31, 2019 Product Widget 22,000 27,000 Thingamajig 10,000 11,000 Amount Used per Unit Thingamajig Direct Material Widget Unit Kilograms Kilograms Each A 4 5 3 B