Fountain Boats, Inc. manufactures and sells boats. In April 2023, Fountain Boats controller

gathered the following data to prepare the May 2023 budget.

Estimated Direct Materials needed is 10 feet of fiberglass per boat and 15 yards of plastic per boat

Estimated Direct manufacturing labor required is 8 hours per boat.

Fountain Boats Controller expects to sell 4,100 boats during May 2023 at an estimated retail

price of $900 per boat. Further, the Controller expects May 2023 beginning inventory of 400

boats and would like to end May 2023 with 600 boats in stock.

The beginning fiberglass inventory on May 1, 2023 is expected to be 1,450 feet. and the ending

balance is expected to be 1,850 feet. The April unit cost was $36.00 per foot and the May unit

cost is projected to be $33.00 per foot.

The beginning plastic inventory on May 1, 2023 is expected to be 2,040 yards and the ending

balance is expected to be 1,640 yards. The April unit cost was $10 per yard and the May cost is

expected to be $8 per yard.

Labor costs are $27 per hour in April and are expected to be $29 in May.

Variable manufacturing overheard is $8 per direct manufacturing labor hour. Fixed

manufacturing overhead costs budgeted for May 2023 are Labor $20,000, Maintenance, $24,000,

Insurance $23,000, property taxes of $16,000 and $64,000 of depreciation costs. Direct

manufacturing labor and the remaining manufacturing and nonmanufacturing overhead costs are paid monthly.

Fountain Boats variable manufacturing overhead rate is based on direct manufacturing labor-

hours. Variable marketing costs are allocated at the rate of $220 per sales visit. The marketing

plan calls for 40 sales visits during May 2023.

Finally, fixed marketing costs budgeted for May 2023 are $8,000 for sales salaries and $7,000 in

advertising. Fixed administrative costs are expected to be $12,000 for administrative salaries,

$5,000 for Legal and Accounting staff, $5,000 for data processing costs and $7,000 for

depreciation.

Finished-goods inventory on April 30, 2023 is valued $640.00 per unit. Assume Fountain Boat

uses a weighted-average inventory method (not LIFO or FIFO) for finished goods. You will

calculate the per unit by adding beginning inventory plus cost of goods manufactured and divide

this by the units produced plus beginning units.

Budgeted Balance Sheet balances as of April 30, 2023 are as follows:

Cash $ 124,000

Accounts Receivable $1,800,000

Inventory Raw Materials $ 72,600

Inventory Finished Goods $ 256,000

Property, Plant and Equipment (net) $1,285,600

Total Assets $3,538,200

Accounts Payable $ 700,000

Long-Term Liabilities $ 192,000

Stockholders Equity $2,646,200

Total Liabilities & Stockholders Equity $3,538,200

Selected budget information for April 2023 follows:

Budgeted sales $3,000,000

Budgeted materials purchases $1,400,000

Customer invoices are payable within 30 days. From past experience, Fountain Boats

accountant projects 40% of invoices will be collected in the month invoiced, and 60% will be

collected in the following month.

Accounts payable relates only to the purchase of direct materials. Direct materials are

purchased on credit with 50% of direct materials purchases paid during the month of the

purchase, and 50% paid in the month following purchases.

There was not any property, plant, and equipment acquired during May 2023.

There were no borrowings or repayments with respect to long-term liabilities in May

2023.

On May 2, 2023, Fountain Boats board of directors declared a $160,00 dividend payable

to stockholders of record on May 15, 2023. The Board paid $160,000 on May 31, 2023.

The income tax rate was 25% and all taxes were paid in 2023.

1. Prepare the May 2023 Production Budget (in units).

2. Prepare the Direct Materials Budget for May 2023.

3. Prepare the Direct Labor Budget for May 2023.

4. Prepare the Schedule of Budgeted Manufacturing Overhead for May 2023.

5. Prepare the Budgeted Statement of Cost of Goods Sold for May 2023.

6. Prepare the Schedule of Budgeted Marketing and Administrative Costs for May 2023.

7. Prepare the Budgeted Income Statement for May 2023

8. Prepare the Cash Budget for May 2023.

9. Prepare a budgeted balance sheet for May 31, 2023 by calculating the additions and subtractions for the month of May.