6-37 Comprehensive-operating-budget-budgeted-balance-sheet. 15th

Skulas, Inc., manufactures and sells snowboards. Skulas manufactures a single model, the Pipex. In the summer of 2014, Skulas' management accountant gathered the following data to prepare budgets for 2015:

Materials and Labor Requirements

Direct materials Wood 9 board feet (b.f.) per snowboard Fiberglass 10 yards per snowboard Direct manufacturing labor 5 hours per snowboard

Skulas' CEO expects to sell 2,900 snowboards during 2015 at an estimated retail price of $650 per board. Further, the CEO expects 2015 beginning inventory of 500 snowboards and would like to end 2015 with 200 snowboards in stock.

1. Prepare the 2015 revenues budget (in dollars). 2. Prepare the 2015 production budget (in units). 3. Prepare the direct material usage and purchases budgets for 2015. 4. Prepare a direct manufacturing labor budget for 2015. 5. Prepare a manufacturing overhead budget for 2015. 6. What is the budgeted manufacturing overhead rate for 2015? 7. What is the budgeted manufacturing overhead cost per output unit in 2015? 8. Calculate the cost of a snowboard manufactured in 2015. 9. Prepare an ending inventory budget for both direct materials and finished goods for 2015. 10. Prepare a cost of goods sold budget for 2015. 11. Prepare the budgeted income statement for Skulas, Inc., for the year ending December 31, 2015. 12. Prepare the budgeted balance sheet for Skulas, Inc., as of December 31, 2015. 13. What questions might the CEO ask the management team when reviewing the budget? Should the CEO set stretch targets? Explain briefly. 14. How does preparing the budget help Skulas' management team better manage the company?