Finished inventory Problems 3: (1.5 point) Visa Elec, Com manufactures two different types of products used in electric motor. In the fall of the current year, Eric, the controller, compiled the following data: Expected Desired inventories, inventories, january 1, Dec 31, 20x0 20x0 20,000 25,000 8,000 9,000 Sale forecasts for 20x0 (all units to be shipped in 20x0) Product Light coil Heavy coil Product Light coil Heavy coil Units 60,000 40,000 Prices $120 170 Production overhead OH cost item Activity based budget rate . Raw material process and inventory levels: Raw material Sheet metal cooper wire platforms $0,25 per pound of sheet metal and cooper wire purchase $4.00 per coil produced (either type) $1 per coil shipped Expected inventories, january 1, 20x0 32,000 lb 29,000lb 6,000lb Anticipated inventories, purchase price $8 5 3 Desired inventories, Dec 31, 20x0 36,000lb 32,000lb 7,000lb Purchasing and material handling Depreciation, utilities Shipping General Production overhead $3 per Direct labour hour Requirements . Use of raw material 1. Sales budget (in dollars). (0.4p) 2. Production budget (in units). (0.4p) 3. Raw-material purchases budget (in quantities) and (in dollars). (0.4p) 4. Direct-labor budget (in dollars). (0.4p) 5. Production-overhead budget (in dollars). (0.4p) Amount used per unit light coil heavy coil 41b 5lb 21b 31b 1 unit Raw material Sheet metal cooper wire platforms . Direct labor requirement and rate Hours per Rate per Product unit Light coil Heavy coil 2 3 Hour $15 20