Finished Goods Inventory Data relating to finished goods inventory for March 2020 are as follows: Sales and Other Information 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 inventory are costed using the FIFO method. - Unit costs of direct materials purchased and finished goods are constant in March 2020. Budgeted Direct-Cost Inputs The budgeted direct-cost inputs for each product in 2020 are as follows: Direct Materials Data pertaining to the direct materials for March 2020 are as follows: Manufacturing Overhead Information The budgeted variable manufacturing overhead rate for March 2020 is $17 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2020 is $14,625. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. Direct-Cost Inputs Unit cost data for direct-cost inputs pertaining to February 2020 and March 2020 are as follows: 1. Prepare the following budgets for March 2020: a. Revenues budget b. Production budget in units c. Direct material usage budget and direct material purchases budget d. Direct manufacturing labor costs budget e. Manufacturing overhead costs budget f. Ending inventories budget (direct materials and finished goods) g. Cost of goods sold budget 2. Suppose Hale Specialties decides to incorporate continuous improvement into its budgeting process. Describe two areas where it could incorporate continuous improvement into the budget schedules in requirement 1. Hale Specialtes manufactures, among other things, woolen blankets for the athletic teams of the two local high schook. (Click the icon to view additional information) (Click the icon to view the budgeted direct-cost.) (Click the icon to view the direct materials) (Click the icon to view the direct-cost inputs.) Manufacturing overhead (both variabie and foed) is alocated in each blanket on the basis of budgeted direct manufacturing tabor-hours pes blankot. (Click the icon to view the overhoasd information) (Click the icon to view the finished goods imentory) (Click the icon to view additional information) Read the cequatements Cost Budget Avalable from beginning direct matorials inventory Direct Materials Additional Blanket Information 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. Broncos Rams To be purchased this period Broncos Rams Direct materials to be used this period
