chapter $6$ Problem $35$

CAN YOU PLEASE WORK THIS PROBLEM WITH WEIGHTED AVERAGE method and NOT,NOT,NOT,FIFO $?$

BUDGET SCHEDULES FOR A MANUFACTURER

Hale spocialties manufactures, among other things, woolen blankets for the athkleic 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:

Broncos, with red blanket and the Broncos logo

Rams, with black blankets and the ram's logo

Also, the black blankets are slightly larger than the red blarkecs. The budgeted direct$-$cost inputs for

each product in $2020$ are as follows:

red wool fabric $5$ yards black wool fabrid $6$ yards broncos logo patches $1,$ rams logo patches $1,$ direct manufacturing labor broncos blanket $4$ hours, rams blanket $5$ hours.

Data pertaining to the direct materials for March $2020$ are as follows:

Actual Beqinning Direct Material Inventary, March $1,2020$

Red wool fabric $40$ yards, black wool fabric $20$ yards, broncos logo patches $50,$ rams logo patches $65.$

Targett Ending Direct Materials invontary, mareh $31,2020$

red wool fabric $30$ yards, black wool fabric $20$ yards, broncos logo patches $30,$ rams logo patches $30$

Unit cost data for direct$-$cost inputs pertaining to February $2020$ and March $2020$ are as follows:

Red wool fabric $($per yard$)$ february $$10,$ March $$11,$ Black wool Fabric $($per yard$)$ february $$14,$ March $$13,$ Broncos log patches $($per patch$)$ february $$8,$ March $$8,$ Rams logo patches $($per patch$)$ February $$7,$ March $$9,$ Manufacturing labor cost per hour february $$27,$ March $$28,$

Manufacturing overhead $($both variable and fixed$)$ is alloceted to each blanket on the basis of budgeted

direct mamufacturing labor$-$hours per blanket. The budgeted variable manuflacturing overtead rate for March $2020$ is $$17$ per direct manufacturing labor$-$hour. The budgeted fixed manufacturing overhead for March $2020$ is $$14\mathrm{.}625.$ Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods.

of finished goods.

Oata relating to finished$-$goods imventery for March $2020$ are as follous:

Budgeted sales for March $2020$ are $140$ units of the Broncos blankets and $195$ units of the Rams

blankets. The budgeted selling prices per unit in March $2020$ are $$305$ for the Broncos blankets and $$378$

for the Rams blankets. Assume the following in your answer:

Work$-$in$-$process inventories are negligible and ignored.

Direct materials inventory and finished$-$goods imentory are costed using the WEITGHTED AVERAGE METHOD.

Unit costs of direct materials purchased and finished goods are constant in March $2020.$

Required

Prepare the following budgets for March $2000$ :

a$.$ revenues budget

b$.$ production budet in units

c$.$ Direct meterial usage budget and direct materials pauchaces budget

d$.$ Direct marufacturing labor costs bulpet

e$.$ Marufacturng overhead costs buddet

f$.$ Ending imventeries budget $($direct materials and finished goods$)$

g$.$ Cost of goods sold budget

Suppose Hale specialties decides to incerporate continusus improvement into its budgeting

process. Describe tano ansas where it could incorporate continudus improvement into the

budgat schedules in requirement