b. Prepare the production budget in units. Production Budget For the Month of March Broncos Rams Budgeted units sales 210 230 38 43 248 273 Add target ending finished goods inventory Total required units Deduct beginning finished goods inventory Units of finished goods to be produced 28 33 220 240 ACCT 3220 - 05 Cost Accounting Aimee Negrete : 09/05/21 1:02 AM = Homework: Cha... Question 4, P6-35 (final a... Part 1 of 10 HW Score: 36.15%, 3.62 of 10 points O Points: 0 of 6 Save Manufacturing overhead (both variable and fixed) is allocated to each blanket on the basis of budgeted direct manufacturing labor-hours per blanket. Lala Specialties manufactures, among other things, woolen blankets for the athletic teams of the two local high schools. (Click the icon to view additional information.) (Click the icon to view the budgeted direct-cost.) (Click the icon to view the direct materials.) B (Click the icon to view the direct-cost inputs.) Budgeted Direct-Cost Inputs The budgeted direct-cost inputs for each product in 2017 are as follows: Broncos Blanket Rams Blanket Additional Blanket Information Red wool fabric 12 yards O yards 0 13 1 0 Black wool fabric Broncos logo patches Rams logo patches Direct manufacturing labor 0 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: Broncos, with red blankets and the Broncos logo Rams, with black blankets and the Rams logo Also, the black blankets are slightly larger than the red blankets. 1 11 hours 12 hours Print Print Done Print Done M Direct-Cost Inputs Unit cost data for direct-cost inputs pertaining to February 2017 and March 2017 are as follows: February 2017 (actual) March 2017 (budgeted) $ 17 $ 18 28 27 Red wool fabric (per yard) Black wool fabric (per yard) Broncos logo patches (per patch) Rams logo patches (per patch) 15 15 14 16 Manufacturing labor cost per hour 34 35 Direct Materials Unit data pertaining to the direct materials for March 2017 are as follows: Actual Beginning Direct Materials Inventory (3/1/2017) Broncos Blanket Rams Blanket Red wool fabric 75 yards O yards Black wool fabric 0 55 85 0 Broncos logo patches Rams logo patches 0 100 Target Ending Direct Materials Inventory (3/31/2017) Broncos Blanket Rams Blanket Red wool fabric 65 yards O yards Manufacturing Overhead Information The budgeted variable manufacturing overhead rate for March 2017 is $24 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2017 is $47,700. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. Sales and Other Information Budgeted sales for March 2017 are 210 units of the Broncos blankets and 230 units of the Rams blankets. The budgeted selling prices per unit in March 2017 are $1,124 for the Broncos blankets and $1,215 for the Rams 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 2017. . I Finished Goods Inventory Data relating to finished goods inventory for March 2017 are as follows: Broncos Blanket Rams Blanket 28 33 Beginning inventory in units Beginning inventory in dollars (cost) Target ending inventory in units $ 5,880 $ 5,346 38 43 c. Prepare the direct material usage budget and direct materials purchases budget. Begin with the physical units portion, then prepare the cost budget portion of the direct material usage budget. (For amounts with a zero balance, make sure to enter "O" in the appropriate cell.) Direct Material Usage Budget in Quantity and Dollars For the Month of March Material Broncos Rams Red wool Black wool logo patches logo patches Total Physical Units Budget Direct materials required for Broncos 2,640 yds. 0 220 0 Rams 0 yds. 3,120 yds. 3.120 0 yds 2.640 yds. 240 220 Total quantity of direct material to be used 240 Lala Specialties manufactures, among other things, woolen blankets for the athletic teams of the two local high schools. (Click the icon to view additional information.) (Click the icon to view the budgeted direct-cost.) B! (Click the icon to view the direct materials.) (Click the icon to view the direct-cost inputs.) Manufacturing overhead (both variable and fixed) is allocated to each blanket on the basis of budgeted direct manufacturing labor-hours per blanket. (Click the icon to view the overhead information.) (Click the icon to view the finished goods inventory.) (Click the icon to view additional information.) Read the requirements. Requirement 1. Prepare the following budgets a. Prepare the revenues budget. Revenues Budget For the Month of March Units Selling Price Total revenues 236,040 Broncos Blankets 210 $ 1,124 $ Rams Blankets 230 1,215 279,450 515,490 Total Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Broncos Rams To be purchased this period Broncos Rams - Direct materials to be used this period