Question

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Vista Electronics, Inc. manufactures two different types of coils used in electric motors. In the fall of the current year, Erica Becker, the controller, compiled the following data.

Sales forecast for 20x0 (all units to be shipped in 20x0):

Product	Units			Price
Light coil		65,000		$	350
Heavy coil		45,000			450

Raw-material prices and inventory levels:

Raw Material	Expected Inventories, January 1, 20x0				Desired Inventories, December 31, 20x0				Anticipated Purchase Price
Sheet metal		43,000	lb.			47,000	lb.		$	13
Copper wire		40,000	lb.			43,000	lb.			8
Platform		6,500	units			7,500	units			4

Use of raw material:

	Amount Used per Unit
Raw Material	Light Coil				Heavy Coil
Sheet metal		4	lb.			5	lb.
Copper wire		2	lb.			3	lb.
Platform						1	unit

Direct-labor requirements and rates:

Product	Hours per Unit				Rate per Hour
Light coil		6			$	10
Heavy coil		8				15

Finished-goods inventories (in units):

Product	Expected January 1, 20x0				Desired December 31, 20x0
Light coil		30,000				35,000
Heavy coil		9,000				10,000

Production overhead:

Overhead Cost Item	Activity-Based Budget Rate
Purchasing and material handling	$	0.90	per pound of sheet metal and copper wire purchased
Depreciation, utilities, and inspection	$	8.00	per coil produced (either type)
Shipping	$	2.00	per coil shipped (either type)
General production overhead	$	6.00	per direct-labor hour

A. Prepare the sales budget (in dollars) for 20x0.

	Sales Budget for 20x0 Total Light coils Heavy coils Projected sales $0

B. Prepare the production budget (in units) for 20x0.

	Production Budget (in units) for 20x0 Light Coils Heavy Coils Projected sales Total requirements Production required (units)

C. Prepare the raw material purchases budget (in quantities) for 20x0.

	Raw Material Purchases Budget (in Quantities) for 20x0 Raw Material Sheet Metal Copper Wire Platform Light coils Heavy coils Production requirements Total requirements Purchase requirements (units)

D. Prepare the raw material purchases budget (in dollars) for 20x0.

	Raw Material Purchases Budget for 20x0 Raw Material Raw Material Required (units) Anticipated Purchase Price Total Sheet metal Copper wire Platforms Total

E. Prepare the direct-labor budget (in dollars) for 20x0.

	Direct-Labor Budget for 20x0 Projected Production (units) Hours per Unit Total Hours Rate Total Cost Light coils Heavy coils Total

F. Prepare the production-overhead budget (in dollars) for 20x0. (Round "Cost Driver Rate" to 2 decimal places.)

	Production Overhead Budget for 20x0 Cost Driver Quantity Cost Driver Rate Budgeted Cost Purchasing and material handling lb. Depreciation, utilities, and inspection coils Shipping coils General production overhead hr. Total production overhead

Answer 1