Hale Specialties manufactures, among other things, woolen blankets for the athletic teams of the two local high schools. Budgeted Direct-Cost Inputs Finished Goods Inventory Manufacturing overhead (both variable and fixed) is allocated to each blanket on the basis of budgeted direct manufacturing labor-hours per blanket. thead information.) shed goods inventory.) hal information.) The budgeted direct-cost inputs for each product in 2017 are as follows: Broncos Blanket Rams Blanket Red wool fabric 5 yards 0 yards Black wool fabric Broncos logo patches Rams logo patches Direct manufacturing labor 4 hours 5 hours Data relating to finished goods inventory for March 2017 are as follows: Broncos Blanket Rams Blanket Beginning inventory in units 19 Beginning inventory in dollars (cost) $ 1,960 $ 2,945 Target ending inventory in units 24 14 Print Done Print Done i Direct Materials Direct-Cost Inputs Unit data pertaining to the direct materials for March 2017 are as follows: Unit cost data for direct-cost inputs pertaining to February 2017 and March 2017 are as follows: March 2017 (budgeted) February 2017 (actual) $ 10 R 14 Actual Beginning Direct Materials Inventory (3/1/2017) Broncos Blanket Rams Blanket Red wool fabric 40 yards 0 yards Black wool fabric Broncos logo patches Rams logo patches 50 Red wool fabric (per yard) Black wool fabric (per yard) Broncos logo patches (per patch) Rams logo patches (per patch) Manufacturing labor cost per hour Target Ending Direct Materials Inventory (3/31/2017) Broncos Blanket Rams Blanket Red wool fabric 30 yards 0 yards Black wool fabric Broncos logo patches Rams logo patches Print Done Enter any number in the edit fields and then click Check Answer Requirement 1. Prepare the following budgets. a. Prepare the revenues budget. Revenues Budget For the Month of March Units Selling Price Total revenues 140 $ 305 $ 42,700 195 73,710 $ 116,410 140 Broncos Blankets Rams Blankets 378_ Total b. Prepare the production budget in units. 196 24 Production Budget For the Month of March Broncos Rams Budgeted units sales 140 Add target ending finished goods inventory Total required units Deduct beginning finished goods inventory Units of finished goods to be produced c. Prepare the direct material usage budget and direct material purchases budget. Begin with the physical units portion, then prepare the cost budget portion of the direct material usage budget. (For amounts with a zero balance, make sure to enter "0" in the appropriate cell) 19 150 205 Begin with the physical units portion, then prepare the cost budget portion of the direct material usage budget. (For amounts with a zero balance, make sure to enter "0" in the appropriate cell.) Direct Material Usage Budget in Quantity and Dollars For the Month of March Material Broncos Red wool Black wool logo patches Rams logo patches Total Physical Units Budget Direct materials required for Broncos 750 yds. 150 Rams 0 yds. 1,230 yds. 1,230 yds. yds 750 Total quantity of direct material to be used Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Broncos = = = = To be purchased this period Broncos Rams Direct materials to be used this period Enter any number in the edit fields and then click Check
