Bonzos Boards makes reasonably high-end skateboards which sell for $400 each. The production process is fairly simple and involves assembling components purchased from various suppliers. Since each skateboard only takes one hour to assemble, there is essentially no work-in-process inventory.

Bonzos Boards has the capacity to make 2,000 skateboards per year.

Costs for the skateboard components are:

	Deck		$40.00
	Trucks	$43.00
	Wheels	42.00
	Bearings	20.00
	Bolts, etc.	15.00
	Hardware package - net		120.00
		Total	$160.00

Each board should take one hour of direct labor to assemble. Direct labor wages are $55 per hour.

Other manufacturing costs on a monthly basis are:

	Rent	$2,500.00
	Insurance	500.00
	Utilities	200.00
	Miscellaneous	300.00
		$3,500.00

Inventory balances are as follows (Bonzos uses FIFO inventory cost flow assumption):

			Units	Dollars
	Decks	1/1/2020	250	$10,000
		12/31/2020	350		< Budgeted
	Hardware Package	1/1/2020	300	$36,000
		12/31/2020	360		< Budgeted
	Finished skateboards	1/1/2020	300	$87,300
		12/31/2020	350		< Budgeted

During 2020 (the entire year) Bonzos Boards expects to sell 500 skateboards.

• What is the budgeted cost of Skateboards manufactured for 2020?

• What is the budgeted cost of Decks purchased for 2020?

• What is the budgeted cost of Hardware Packages purchased for 2020?

• What is budgeted dollar value of ending Finished Skateboard inventory?

• What is the budgeted dollar value of ending Deck inventory?

• What is the budgeted dollar value of ending Hardware Package inventory?

• How much income does Bonzos Boards expect to make if they sell 500 skateboards in 2020 and have budgeted Selling & Administrative expenses of $20,000 (assume no income taxes)?