Scarborough Corporation manufactures and sells two products: D-One and D-Two. In July 2018, Scarborough budget department gathered the following data to prepare budgets for 2019: 2019 Projected Sales: Product D-One D-Two Units 60,000 40,000 Price |S165 $250 2019 Inventories in Units: Product D-One D-Two Expected Target January 1, 2019 20,000 8,000 December 31, 2019 25,000 9,000 The following direct materials are used in the two products: Amount Used per Unit Unit |kilogram |kilogram each Direct material D-One D-Two A 5 B 2 3 Projected data for 2019 with respect to direct materials are as follows: Expected Inventories January 1, 2019 32,000 kg 29,000 kg_ 6,000 units Direct material Anticipated Purchase price $12 5 3 Target Inventories December 31, 2019 36,000 kg 32,000 kg 7,000 units B Projected direct labour requirements and rates for 2019 are as follows: Product D-One D- Two Hours per unit 2 3 Rate per hour |$12 16 Based on the preceding projections and budget requirements for D-One and D-Two, prepare the following budgets for 2019. Required: a) Sales budget b) Production budget c) Direct material purchases budget (in quantities) d) Direct material purchases budget (in dollars) e) Direct labour budget (in dollars)
Scarborough Corporation manufactures and sells two products: D-One and D-Two. In July 2018, Scarborough budget department gathered the following data to prepare budgets for 2019: 2019 Projected Sales: Product D-One D-Two Units 60,000 40,000 Price |S165 $250 2019 Inventories in Units: Product D-One D-Two Expected Target January 1, 2019 20,000 8,000 December 31, 2019 25,000 9,000 The following direct materials are used in the two products: Amount Used per Unit Unit |kilogram |kilogram each Direct material D-One D-Two A 5 B 2 3 Projected data for 2019 with respect to direct materials are as follows: Expected Inventories January 1, 2019 32,000 kg 29,000 kg_ 6,000 units Direct material Anticipated Purchase price $12 5 3 Target Inventories December 31, 2019 36,000 kg 32,000 kg 7,000 units B Projected direct labour requirements and rates for 2019 are as follows: Product D-One D- Two Hours per unit 2 3 Rate per hour |$12 16 Based on the preceding projections and budget requirements for D-One and D-Two, prepare the following budgets for 2019. Required: a) Sales budget b) Production budget c) Direct material purchases budget (in quantities) d) Direct material purchases budget (in dollars) e) Direct labour budget (in dollars)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer only part d and e
Transcribed Image Text:Scarborough Corporation manufactures and sells two products: D-One and D-Two. In July 2018,
Scarborough budget department gathered the following data to prepare budgets for 2019:
2019 Projected Sales:
Product
D-One
Units
60,000
40,000
Price
$165
$250
D-Two
2019 Inventories in Units:
Expected Target
January 1, 2019
20,000
8,000
Product
December 31, 2019
25,000
9,000
D-One
D-Two
The following direct materials are used in the two products:
Amount Used per Unit
Direct material
Unit
D-One
D-Two
kilogram
kilogram
A
4
5
2
3
each
1
Projected data for 2019 with respect to direct materials are as follows:
Expected Inventories
January 1, 2019
32,000 kg
29,000 kg
6,000 units
Direct
material
Anticipated
Purchase price
$12
5
Target Inventories
December 31, 2019
36,000 kg
32,000 kg
7,000 units
A
B
C
3
Projected direct labour requirements and rates for 2019 are as follows:
Product
D-One
D- Two
Hours per unit
Rate per hour
$12
2
3
16
Based on the preceding projections and budget requirements for D-One and D-Two,
prepare the following budgets for 2019.
Required:
a) Sales budget
b) Production budget
c) Direct material purchases budget (in quantities)
d) Direct material purchases budget (in dollars)
e) Direct labour budget (in dollars)
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