I need help with parts E-G
Lalonde Specialties manufactures, among other things, woolen blanketsfor the athletic teams of the two local high (Click the icon to view additional information.) EEl (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.) Budgeted Direct-Cost Inputs Additional Blanket Information The budgeted direct-cost inputs for each product in 2017 are as follows: The company sews the blankets from fabric and sews on a logo patch purchased from the licensed logo store site. The teams Broncos Blanket Rams Blanket are as follows: Red wool fabric Black wool fabri Broncos logo patches Rams logo patches Direct manufacturing labor 11 yards 0 yards Requirement 1. Prepare the following budgets. Broncos, with red blankets and the Broncos logo Rams, with black blankets and the Rams logo 12 a. Prepare the revenues budget. Also, the black blankets are slightly larger than the red blankets. Revenues Budget For the Month of March Units Selling Price PrintDone 10 hours 11 hours Total revenues 194600 Broncos Blankets 200 $ 973 Print Done Rams Blankets2251,064 239400 434000 Total b. Prepare the production budget in units. Production Budget For the Month of March Rams Budgeted units sales Add target ending finished goods inventory Total required units Deduct beginning finished goods inventory 200 36 236 26 225 EEB (Click the icon to view the direct materials.) EEB (Click the icon to view the direct-cost inputs.) Broncos Blanket Rams Blanket Red wool fabric Black wool fabric Broncos logo patches 70 yards 0 yards 50 b. Prepare the production budget in units. Production Budget Rams logo patches 95 For the Month of March Target Ending Direct Materials Inventory (3/31/2017) Rams Broncos Blanket Rams Blanket Budgeted units sales 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 m 225 Red wool fabric Black wool fabric Broncos logo patches Rams logo patches 0 yards 60 yards 36 236 26 210 60 266 31 235 60 60 Print Done te cell.) 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"O" in the appropriate cell.) Dollars Direct Material Usage Budget in Quantity and Direct-Cost Inputs For the Month of March Rams Unit cost data for direct-cost inputs pertaining to February 2017 and March 2017 are as follows: patchesTotal logo March 2017 (budgeted) 17 25 14 15 34 Black woollogo patches Red wool February 2017 (actual) Physical Units Budget Direct materials required for 16 26 14 13 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 210 2310 yds. 235 2820 Rams Total quantity of direct material to be used Cost Budget Available from beginning direct materials inventory 235 210 2820 Print Done (under a FIFO cost-flow assumption) 1120 1120 Broncos 1235 1300 Rams yds yds 2820 s Manufacturing Overhead Information 2310 210 235 Total quantity of direct material to be used Cost Budget Available from beginning direct materials inventory The budgeted variable manufacturing overhead rate for March 2017 is $23 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2017 is $37,480. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. (under a FIFO cost-flow assumption) 1120 1120 1235 1300 Rams Print Done To be purchased this period 38080 1820 Broncos 69250 2100 Rams Finished Goods Inventory 3335 2940 116025 Direct materials to be used this period Now prepare March's direct material purchases budget. Data relating to finished goods inventory for March 2017 are as follows Direct Materials Purchases Budget Broncos Blanket Rams Blanket For the Month of March Beginning inventory in units Beginning inventory in dollars (cost) 5,200 Target ending inventory in units 26 31 S 4,991 Rams 36 Black woollogo patches Red wool logo patchos Total Now prepare March's direct material purchases budget. Sales and Other Information Direct Materials Purchases Budget For the Month of March Materials Budgeted sales for March 2017 are 200 units of the Broncos blankets and 225 units of the Rams blankets. The budgeted selling prices per unit in March 2017 are $973 for the Broncos blankets and $1,064 for the Rams blankets. Assume the following in your answer Broncos Rams ogo patches Red wool Black wool logo patches Total 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 2017 Physical Units Budget To be used in production Add target ending inventory Total requirement Deduct beginning inventory Purchases to be made Cost Budget To be usod in production2310 yds.282ds 210235 60 295 95 2880 yds Print Done 2370 yds. 270 80 115510 39100 70750 2660 3000 d. Prepare the direct manufacturing labor costs budget (Abbreviation used: DMLH Direct manufacturing labor hours) Direct Manufacturing Labor Costs Budget For the Month of March d. Prepare the direct manufacturing labor costs budget. (Abbreviation used: DMLH = Direct manufacturing labor hours) Direct Manufacturing Labor Costs Budget For the Month of March Output units DMLH Total Hourly wage rato per unit DMLH Total 210 2100 34 71400 87890 159290 Broncos blankets Rams blankets Total e. Prepare the manufacturing overhead costs budget Start by selecing the formula, and calculating the budgeted variable manufacturing overhead costs for March. 10.0 235 2585 34 11.0 Variable manufacturing overhead costs Now prepare the total manufacturing overhead cost budgets by entering the appropriate amounts then calculate the total manufacturing overhead costs. Manufacturing Overhead Budget For the Month of March Now prepare the total manufacturing overhead cost budgets by entering the appropriate amounts then calculate the total manufacturing overhead costs. Manufacturing Overhead Budget For the Month of March Variable manufacturing overhead costs Fixed manufacturing overhead costs Total manufacturing overhead costs f. Prepare the ending inventories budget (direct materials and finished goods). Complete the information below by entering the appropriate amounts to calculate the unit costs of ending finished goods inventory for the Broncos blankets and Rams blankets. Remember the fixed manufacturing overhead rate is the total fixed manufacturing overhead divided by the total direct manufacturing labor hours. Unit Costs of Ending Finished Goods Inventory March 31, 2017 nanufactunng overhead divided by the total direct manufactunng labor hours. Unit Costs of Ending Finished Goods Inventory March 31, 2017 Rams Cost per unit of input Input per unit of output Cost per unit of input Input per unit Tota of output Tota Wool ogo irect manufacturing labor ixed manufacturing overhead ariable manufacturing overhead Total ow prepare the ending inventories budget. 17 11 yds. 25 15 34 12 yds 34 10 hrs. 0 hrs. 10 hrs. 11 hrs. 11 hrs 2311 hrs. Ending Inventories Budget Ending Inventories Budget March 31, 2017 Quantity Total t per unit Direct materials 60 60 60 60 17 25 14 15 Red wool Black wool Broncos logo Rams logo Finished goods 36 Broncos blankets Rams blankets Total ending inventory 41 g. Prepare the cost of goods scld budget. g. Prepare the cost of goods sold budget Cost of Goods Sold Budget For the Month of March, 2017 Beginning finished goods inventory, March Direct materials used Direct manufacturing labor Manufacturing overhead Cost of goods manufactured Cost of goods available for sale Deduct ending finished goods inventory, March 31 Cost of goods sold Requirement 2. Suppose Lalonde Specialties decides to incorporate continuous improvement into its budgeting process. Select two areas where it could incorporate continuous improvement into the budget schedules in requirement1 By increasing the target ending finished goods inventory, Lalonde Specialties will reduce the production budget therefore continually improve the direct material purchases budget Direct manufacturing labor can incorporate continuous improvement by revising the budgeted usage of 10 ours and 11 hours on a monthly basis. Lalonde Specialties can continually improve variable manufacturing overhead by budgeting more efficient use of the allocation base To continually improve the direct material usage budget, the company should verify that the beginning inventory is as low as possible to decrease the materials used during production. Only by reducing the budget on a monthly basis for the amounts or fixed overhead can Lalonde Specialties continually improve fixed manufacturing overhead. Lalonde Specialties manufactures, among other things, woolen blanketsfor the athletic teams of the two local high (Click the icon to view additional information.) EEl (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.) Budgeted Direct-Cost Inputs Additional Blanket Information The budgeted direct-cost inputs for each product in 2017 are as follows: The company sews the blankets from fabric and sews on a logo patch purchased from the licensed logo store site. The teams Broncos Blanket Rams Blanket are as follows: Red wool fabric Black wool fabri Broncos logo patches Rams logo patches Direct manufacturing labor 11 yards 0 yards Requirement 1. Prepare the following budgets. Broncos, with red blankets and the Broncos logo Rams, with black blankets and the Rams logo 12 a. Prepare the revenues budget. Also, the black blankets are slightly larger than the red blankets. Revenues Budget For the Month of March Units Selling Price PrintDone 10 hours 11 hours Total revenues 194600 Broncos Blankets 200 $ 973 Print Done Rams Blankets2251,064 239400 434000 Total b. Prepare the production budget in units. Production Budget For the Month of March Rams Budgeted units sales Add target ending finished goods inventory Total required units Deduct beginning finished goods inventory 200 36 236 26 225 EEB (Click the icon to view the direct materials.) EEB (Click the icon to view the direct-cost inputs.) Broncos Blanket Rams Blanket Red wool fabric Black wool fabric Broncos logo patches 70 yards 0 yards 50 b. Prepare the production budget in units. Production Budget Rams logo patches 95 For the Month of March Target Ending Direct Materials Inventory (3/31/2017) Rams Broncos Blanket Rams Blanket Budgeted units sales 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 m 225 Red wool fabric Black wool fabric Broncos logo patches Rams logo patches 0 yards 60 yards 36 236 26 210 60 266 31 235 60 60 Print Done te cell.) 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"O" in the appropriate cell.) Dollars Direct Material Usage Budget in Quantity and Direct-Cost Inputs For the Month of March Rams Unit cost data for direct-cost inputs pertaining to February 2017 and March 2017 are as follows: patchesTotal logo March 2017 (budgeted) 17 25 14 15 34 Black woollogo patches Red wool February 2017 (actual) Physical Units Budget Direct materials required for 16 26 14 13 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 210 2310 yds. 235 2820 Rams Total quantity of direct material to be used Cost Budget Available from beginning direct materials inventory 235 210 2820 Print Done (under a FIFO cost-flow assumption) 1120 1120 Broncos 1235 1300 Rams yds yds 2820 s Manufacturing Overhead Information 2310 210 235 Total quantity of direct material to be used Cost Budget Available from beginning direct materials inventory The budgeted variable manufacturing overhead rate for March 2017 is $23 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2017 is $37,480. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. (under a FIFO cost-flow assumption) 1120 1120 1235 1300 Rams Print Done To be purchased this period 38080 1820 Broncos 69250 2100 Rams Finished Goods Inventory 3335 2940 116025 Direct materials to be used this period Now prepare March's direct material purchases budget. Data relating to finished goods inventory for March 2017 are as follows Direct Materials Purchases Budget Broncos Blanket Rams Blanket For the Month of March Beginning inventory in units Beginning inventory in dollars (cost) 5,200 Target ending inventory in units 26 31 S 4,991 Rams 36 Black woollogo patches Red wool logo patchos Total Now prepare March's direct material purchases budget. Sales and Other Information Direct Materials Purchases Budget For the Month of March Materials Budgeted sales for March 2017 are 200 units of the Broncos blankets and 225 units of the Rams blankets. The budgeted selling prices per unit in March 2017 are $973 for the Broncos blankets and $1,064 for the Rams blankets. Assume the following in your answer Broncos Rams ogo patches Red wool Black wool logo patches Total 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 2017 Physical Units Budget To be used in production Add target ending inventory Total requirement Deduct beginning inventory Purchases to be made Cost Budget To be usod in production2310 yds.282ds 210235 60 295 95 2880 yds Print Done 2370 yds. 270 80 115510 39100 70750 2660 3000 d. Prepare the direct manufacturing labor costs budget (Abbreviation used: DMLH Direct manufacturing labor hours) Direct Manufacturing Labor Costs Budget For the Month of March d. Prepare the direct manufacturing labor costs budget. (Abbreviation used: DMLH = Direct manufacturing labor hours) Direct Manufacturing Labor Costs Budget For the Month of March Output units DMLH Total Hourly wage rato per unit DMLH Total 210 2100 34 71400 87890 159290 Broncos blankets Rams blankets Total e. Prepare the manufacturing overhead costs budget Start by selecing the formula, and calculating the budgeted variable manufacturing overhead costs for March. 10.0 235 2585 34 11.0 Variable manufacturing overhead costs Now prepare the total manufacturing overhead cost budgets by entering the appropriate amounts then calculate the total manufacturing overhead costs. Manufacturing Overhead Budget For the Month of March Now prepare the total manufacturing overhead cost budgets by entering the appropriate amounts then calculate the total manufacturing overhead costs. Manufacturing Overhead Budget For the Month of March Variable manufacturing overhead costs Fixed manufacturing overhead costs Total manufacturing overhead costs f. Prepare the ending inventories budget (direct materials and finished goods). Complete the information below by entering the appropriate amounts to calculate the unit costs of ending finished goods inventory for the Broncos blankets and Rams blankets. Remember the fixed manufacturing overhead rate is the total fixed manufacturing overhead divided by the total direct manufacturing labor hours. Unit Costs of Ending Finished Goods Inventory March 31, 2017 nanufactunng overhead divided by the total direct manufactunng labor hours. Unit Costs of Ending Finished Goods Inventory March 31, 2017 Rams Cost per unit of input Input per unit of output Cost per unit of input Input per unit Tota of output Tota Wool ogo irect manufacturing labor ixed manufacturing overhead ariable manufacturing overhead Total ow prepare the ending inventories budget. 17 11 yds. 25 15 34 12 yds 34 10 hrs. 0 hrs. 10 hrs. 11 hrs. 11 hrs 2311 hrs. Ending Inventories Budget Ending Inventories Budget March 31, 2017 Quantity Total t per unit Direct materials 60 60 60 60 17 25 14 15 Red wool Black wool Broncos logo Rams logo Finished goods 36 Broncos blankets Rams blankets Total ending inventory 41 g. Prepare the cost of goods scld budget. g. Prepare the cost of goods sold budget Cost of Goods Sold Budget For the Month of March, 2017 Beginning finished goods inventory, March Direct materials used Direct manufacturing labor Manufacturing overhead Cost of goods manufactured Cost of goods available for sale Deduct ending finished goods inventory, March 31 Cost of goods sold Requirement 2. Suppose Lalonde Specialties decides to incorporate continuous improvement into its budgeting process. Select two areas where it could incorporate continuous improvement into the budget schedules in requirement1 By increasing the target ending finished goods inventory, Lalonde Specialties will reduce the production budget therefore continually improve the direct material purchases budget Direct manufacturing labor can incorporate continuous improvement by revising the budgeted usage of 10 ours and 11 hours on a monthly basis. Lalonde Specialties can continually improve variable manufacturing overhead by budgeting more efficient use of the allocation base To continually improve the direct material usage budget, the company should verify that the beginning inventory is as low as possible to decrease the materials used during production. Only by reducing the budget on a monthly basis for the amounts or fixed overhead can Lalonde Specialties continually improve fixed manufacturing overhead
