Lame Specialties manufactures, among other things, woolen blankets for the athletic teams of the two local high

Question:

Lame Specialties manufactures, among other things, woolen blankets for the athletic teams of the two local high schools. The company sews the blankets from fabric and sews on a logo patch purchased from the licensed logo store site. The teams are as follows:
€¢ Knights, with red blankets and the Knights logo
€¢ Raiders, with black blankets and the Raider logo
Also, the black blankets are slightly larger than the red blankets.
The budgeted direct-cost inputs for each product in 2013 are as follows:

Unit data pertaining to the direct materials for March 2013 are as follows:

Actual Beginning Direct Materials Inventory (3/1/2013) Knights Blanket Raiders Blanket Red wool fabric 35 yards O yards

Unit cost data for direct-cost inputs pertaining to February 2013 and March 2013 are as follows:

Manufacturing overhead (both variable and fixed) is allocated to each blanket on the basis of budgeted direct manufacturing labor-hours per blanket. The budgeted variable manufacturing overhead rate for March 2013 is $16 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2013 is $14,640. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods.
Data relating to finished goods inventory for March 2013 are as follows:

Budgeted sales for March 2013 are 130 units of the Knights blankets and 190 units of the Raiders blankets. The budgeted selling prices per unit in March 2013 are $229 for the Knights blankets and $296 for the Raiders blankets. Assume the following in your answer:
€¢ Work-in-process inventories are negligible and ignored.
€¢ Direct materials inventory and finished goods inventory are costed using the FIFO method.
€¢ Unit costs of direct materials purchased and finished goods are constant in March 2013.
Required
1. Prepare the following budgets for March 2013:
a. Revenues budget
b. Production budget in units
c. Direct material usage budget and direct material purchases budget
d. Direct manufacturing labor budget
e. Manufacturing overhead budget
f. Ending inventories budget (direct materials and finished goods)
g. Cost of goods sold budget
2. Suppose Lame Specialties decides to incorporate continuous improvement into its budgeting process. Describe two areas where it could incorporate continuous improvement into the budget schedules in requirement 1.