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The scarborough corporation manufactures and sells two products

01/05/2021 Client: muhammad11 Deadline: 2 Day

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

Product ___________ Units ___________ Price

Thingone .............69,000 .............$160

Thingtwo ..............44,000 .............$258

2017 Inventories in Units

The Chen Corporation manufactures and sells two products: Thingone and
The following direct materials are used in the two products:

The Chen Corporation manufactures and sells two products: Thingone and
Projected data for 2017 for direct materials are:

The Chen Corporation manufactures and sells two products: Thingone and
Projected direct manufacturing labor requirements and rates for 2017 are
Product __________ Hours per Unit ______ Rate per Hour
Thingone ...................4 ....................$13
Thingtwo ...................5 .................... 18
Manufacturing overhead is allocated at the rate of $24 per direct manufacturing labor-hour.
Required
Based on the preceding projections and budget requirements for Thingone and Thingtwo, prepare the following budgets for 2017:
1. Revenues budget (in dollars)
2. What questions might the CEO ask the marketing manager when reviewing the revenues budget? Explain briefly.
3. Production budget (in units)
4. Direct material purchases budget (in quantities)
5. Direct material purchases budget (in dollars)
6. Direct manufacturing labor budget (in dollars)
7. Budgeted finished-goods inventory at December 31, 2017 (in dollars)
8. What questions might the CEO ask the production manager when reviewing the production, direct materials, and direct manufacturing labor budgets?
9. How does preparing a budget help Chen Corporation's top management better manage the company?

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