Slopes Inc. manufactures and sells snowboards. Slopes manufactures a single model, the Pipex. In the summer of 2015, Slopes's accountant gathered the following data to prepare budgets for 2016. These units are standard in the lumber industry. Wage rate = $25/hr.

Materials and Labour Requirements

Direct materials

Wood......................5 board-feet per snowboard

Fibreglass........................6 yards per snowboard

Direct labour....................5 hours per snowboard

Slopes's CEO expects to sell 1,200 snowboards during 2016 at an estimated retail price of $540 per board. Further, she expects 2016 beginning inventory to be 100 boards and would like to end 2016 with 200 snowboards in stock. The company follows FIFO for inventory flow.

Direct Material Inventories

Beginning InventoryEnding Inventory

January 1, 2016December 31, 2016

Wood.......................2,000 feet................1,500 feet

Fibreglass................1,000 yards...............2,000 yards

The beginning inventory of wood was purchased at $34 per board foot and fibreglass was purchased at $5.80 per yard. Prices have now risen to $36 per board foot of wood and $6 per yard of fibreglass. Variable manufacturing overhead is allocated at the rate of $8.40 per direct manufacturing labour-hour. Fixed manufacturing overhead costs are budgeted at $78,000 for 2016. Variable marketing costs are allocated at the rate of $300 per sales visit, and the marketing plan calls for 36 sales visits during 2016. Finally, fixed nonmanufacturing costs are budgeted at $36,000 for 2016.

Required

Based on the data and projections supplied by Slopes's managers,

1. Prepare the 2016 revenue budget (in dollars).

2. Prepare the 2016 production budget (in units).

3. Prepare direct materials usage and purchases budgets for 2016.

4. Prepare a direct manufacturing labour budget for 2016.

5. Prepare a manufacturing overhead budget for 2016.

6. What is the budgeted manufacturing overhead rate?

7. What is the budgeted manufacturing overhead cost per output unit?

8. Calculate the cost of a snowboard in finished goods inventory at the end of 2016.

9. Prepare an Ending Inventory budget for 2016.

10. Prepare a cost of goods sold budget for 2016. (Opening finished goods inventory is $44,976.)

11. Prepare the budgeted income statement for Slopes Inc. for 2016.