(Click the icon to view the other data.) Sleds, Inc., manufactures and sells snowboards. Sleds manufactures a single model, the Pipex. In the summer of 2011, Sleds' management accountant gathered the following data to prepare budgets for 2012 (Click the icon to view the materials and labor requirements) (Click the icon to view the sale price information.) (Click the icon to view the direct materials inventories) The inventoriable unit cost for ending finished goods inventory on December 31, 2011, is $300.00. Assume Sleds uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. Read the requirements. i (Click the icon to view the budgeted information.) . Materials and Labor Requirements Direct materials Wood Fiberglass Direct manufacturing labor 12 board feet (b.f.) per snowboard 10 yards per snowboard 6 hours per snowboard Sleds' management expects to sell 3,100 snowboards during 2012 at an estimated retail price of $850 per board. Furthermore, the CEO expects 2012 beginning inventory of 600 snowboards and would like to end 2012 with 700 snowboards in stock. Direct Materials Inventories Wood Beginning Inventory 1/1/2012 2,050 b.f. 1,050 yards Ending Inventory 12/31/2012 1,550 b.f. 2,050 yards Fiberglass Variable manufacturing overhead is $15 per direct manufacturing labor-hour. There are also $19,200 in fixed manufacturing overhead costs budgeted for 2012. Sleds combines both variable and fixed manufacturing overhead into a single rate based on direct manufacturing labor-hours. Variable marketing costs are allocated at the rate of $300 per sales visit. The marketing plan calls for 39 sales visits during 2012. Finally, there are $36,000 in fixed nonmanufacturing costs budgeted for 2012. 2011 Unit Price 2012 Unit Price Wood $ $ 33.00 per b.f. 9.00 per yard $ $ Fiberglass Direct manufacturing labor 35.00 per b.f. 10.00 per yard 30.00 per hour $ 29.00 per hour $ 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? 7. 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 Sleds, Inc., for the year ending December 31, 2012 12 What questions might the CEO ask the management team when reviewing the budget? Should the CEO set stretch targets? Explain briefly 13. How does preparing the budget help Sleds' management team better manage the company
