6-35 Comprehensive operating budget, budgeted balance sheet. Slopes, Inc., manufactures and sells snowboards. Slopes manufactures a single model, the Pipex. In the summer of 2011, Slopes' management accountant gathered the following data to prepare budgets for 2012: Materials and Labor Requirements Direct materials 5 board feet (b.f.) per snowboard 6 yards per snowboard 5 hours per snowboard Wood Fiberglass Direct manufacturing labor Slopes' CEO expects to sell 1,000 snowboards during 2012 at an estimated retail price of $450 per board. Further, the CEO expects 2012 beginning inventory of 100 snowboards and would like to end 2012 with 200 snowboards in stock. Direct Materials Inventories Beginning Inventory 1/1/2012 2,000 b.f. 1,000 yards Ending Inventory 12/31/2012 1,500 b.f. 2,000 yards Wood Fiberglass Variable manufacturing overhead is $7 per direct manufacturing labor-hour. There are also $66,000 in fixed manufacturing overhead costs budgeted for 2012. Slopes combines both variable and fixed man- ufacturing overhead into a single rate based on direct manufacturing labor-hours. Variable marketing costs are alloc ated at the rate of $250 per sales visit. The marketing plan calls for 30 sales visits during 2012. Finally, there are $30,000 in fixed nonmanufacturing costs budgeted for 2012. Other data include the following: 2012 Unit Price $30.00 per b.f. $ 500 per yard $25.00 per hour 2011 Unit Price Wood Fibergla ss Direct manufacturing labor $28.00 per b.f. $ 4.80 per yard $24.00 per hour The inventoriable unit cost for ending finished goods inventory on December 31, 2011, is $374.80. Assume Slopes uses a FIFO in ventory method for both direct materials and finished goods. Ignore work in process in your calculations. Budgeted balances at December 31, 2012, in the selected accounts are as follows: Cash $ 10,000 Property, plant, and equipme nt (net) 850,000 Current liabilities 17,000 Long-term liabilities Stockholders' equity 178,000 800,000 1. Prepare the 2012 revenues budget (in dollars). 2. Prepare the 2012 production budget (in units). 3. Prepare the direct material usage and purchases budgets for 2012. 4. Prepare a direct manufacturing labor budget for 2012. 5. Prepare a manufacturing overhead budget for 2012. 6. What is the budgeted manufacturing overhead rate for 2012? 1. What is the budgeted manufacturing overhead cost per output unit in 2012? 8. Calculate the cost of a snowboard manufactured in 2012. 9. Prepare an ending inventory budget for both direct materials and finished goods for 2012. 10. Prepare a cost of goods sold budget for 2012. 11. Prepare the budgeted income statement for Slopes, Inc., for the year ending December 31, 2012. 12. Prepare the budgeted balance sheet for Slopes, Inc., as of December 31, 2012. Required
