The Chen Corporation manufactures and sells two products: Thingone and Thingtwo. In July 2016, Chen's budget department gathered the following data to prepare budgets for 2017: 2017 Projected Sales Units Product Price $160 S758 Thingone Thingtwo 69,000 44,000 2017 Inventories in Units Expected Target January 1, 2017 Product December 31, 2017 Thingone Thingtwo 29,000 24,000 7,000 8,000 The following direct materials are used in the two products: Amount Used per Unit Direct Material Unit Thingone Thingtwo pound pound each Projected data for 2017 for direct materials are: Expected Inventories January 1, 2017 36,000 Ib. 31,000 Ib. 9,000 units Target Inventories December 31, 2017 Direct Material Anticipated Purchase Price $13 38,000 lb. 34,000 lb. 12,000 units Projected direct manufacturing labor requirements and rates for 2017 are: Product Hours per Unit Rate per Hour $13 Thingone Thingtwo 18 Manufacturing overhead is allocated at the rate of $24 per direct manufacturing labor-hour.
The Chen Corporation manufactures and sells two products: Thingone and Thingtwo. In July 2016, Chen's budget department gathered the following data to prepare budgets for 2017: 2017 Projected Sales Units Product Price $160 S758 Thingone Thingtwo 69,000 44,000 2017 Inventories in Units Expected Target January 1, 2017 Product December 31, 2017 Thingone Thingtwo 29,000 24,000 7,000 8,000 The following direct materials are used in the two products: Amount Used per Unit Direct Material Unit Thingone Thingtwo pound pound each Projected data for 2017 for direct materials are: Expected Inventories January 1, 2017 36,000 Ib. 31,000 Ib. 9,000 units Target Inventories December 31, 2017 Direct Material Anticipated Purchase Price $13 38,000 lb. 34,000 lb. 12,000 units Projected direct manufacturing labor requirements and rates for 2017 are: Product Hours per Unit Rate per Hour $13 Thingone Thingtwo 18 Manufacturing overhead is allocated at the rate of $24 per direct manufacturing labor-hour.
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Based on the preceding projections and budget requirements for Thingone and Thingtwo, prepare the following budgets for 2017:
*Direct material purchases budget (in dollars)
Transcribed Image Text:The Chen Corporation manufactures and sells
two products: Thingone and Thingtwo. In July 2016, Chen's budget department gathered the following data
to prepare budgets for 2017:
2017 Projected Sales
Units
Product
Price
$160
S758
Thingone
Thingtwo
69,000
44,000
2017 Inventories in Units
Expected Target
January 1, 2017
Product
December 31, 2017
Thingone
Thingtwo
29,000
24,000
7,000
8,000
The following direct materials are used in the two products:
Amount Used per Unit
Direct Material
Unit
Thingone
Thingtwo
pound
pound
each
Projected data for 2017 for direct materials are:
Expected Inventories
January 1, 2017
36,000 Ib.
31,000 Ib.
9,000 units
Target Inventories
December 31, 2017
Direct Material
Anticipated Purchase Price
$13
38,000 lb.
34,000 lb.
12,000 units
Projected direct manufacturing labor requirements and rates for 2017 are:
Product
Hours per Unit
Rate per Hour
$13
Thingone
Thingtwo
18
Manufacturing overhead is allocated at the rate of $24 per direct manufacturing labor-hour.
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