Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1) Budget schedules for a manufacturer. Logo Specialties manufactures, among other things, woolen blankets for the athletic teams of the two local high schools. The

image text in transcribed
image text in transcribed
1) Budget schedules for a manufacturer. Logo 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 2012 are as follows: Knights Blanket Raiders Blanket Red wool fabric 3 yards 0 Black wool fabric 0 3.3 yards Knight logo patches 1 0 Raider logo patches 0 1 Direct manufacturing labor 1.5 hours 2 hours Unit data pertaining to the direct materials for March 2012 are as follows: Actual Beginning Direct Materials Inventory (3/1/2012) Knights Blanket Raiders Blanket Red wool fabric 30 yards 0 Black wool fabric 0 10 yards Knight logo patches 40 0 Raider logo patches 0 55 Target Ending Direct Materials Inventory (3/31/2012) Knights Blanket Red wool fabric 20 yards Black wool fabric 0 Knight logo patches 20 Raider logo patches 0 Raiders Blanket D 20 yards 0 20 Unit cout data for direct cost inputs pertaining to February 2012 and March 2012 are as follow February 2012 (actual March 2012 budgeted 59 9 Hed wool fabric (per yard) Black wool fabric (per yard) Knight logo patches (par patch) Raider logo patches (per patch) Manufacturing labor cost per hour 10 6 5 25 7 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 2012 is $15 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2012 is $9,200. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. Data relating to finished goods inventory for March 2012 are as follows: Knights Blankets Raiders Blankets Beginning inventory in units 10 15 Beginning inventory in dollars (cost) $1.210 $2.235 Target anding inventory in units 20 25 Budgeted sales for March 2012 are 120 units of the Knights blankets and 180 units of the Raiders blankets. The budgeted selling prices per unit in March 2012 are $150 for the Knights blankets and $175 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 2012. Prepare the following budgets for March 2012: . . 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations Of Cost Control

Authors: Daniel Traster

1st Edition

0132156555, 978-0132156554

More Books

Students also viewed these Accounting questions

Question

What is the work environment like? Friendly/collegial?

Answered: 1 week ago