Prepare the Ending Inventories Budget, cost of the goods sold budged and budgeted income statements.

Bramlett Company produces and sells two different product: Thingone and Thingtwo. Company uses two different production department dedicated for each product. All the other activities in the company are combined in two Support Departments. These Support Departments are responsible of supplying services to the production departments these costs are allocated to each department by using the manufacturing labor hour used Addition to all the Company has Marketing and Distribution activity fixed costs $680,000 and $362,000 respectively. In 2014 the following data is gathered to prepare the 2015 budget: 2015 PROJECTED SALES 2015 INVENTORIES IN UNITS Product Units Begining Inventory Ending Inventory Thingone 60,000 $165 20,000 25.000 Thingtwo 40.000 $220 8,000 9,000 Price Budgeted Direct Materials Unit Unit Price AMOUNT USED PER 2015 INVENTORIES IN UNITS UNIT Thingone Thingtwo Begining Ending Inventory Inventory 4 5 32,000 36,000 2 29,000 32,000 0 1 6,000 7,000 A kg kg $12 $5 B C unit $3 Per Hour Product Thingone Thingtwo DIRECT MANUFACTURING LABOR HOURS Hours per Unit Rate 2 $16 3 $16 Fixed Support Department Sup1 Sup2 Cost $1,200,000 $2,640,000 Variable Cost $3 $2 Variable Cost Thingone Thingtwo Non- Fixed Manufacturing Cost Costs Marketing $400,000 Distribution $300,000 $2 $4 $0,5 $0,8 COMPANY'S ASSUMPTIONS IN PREPARATION OF THE BUDGET 1. The FIFO inventory method is used 2. Direct Method used while allocating the support department costs to operating departments 3. Cost of materials and labor are given as an average value therefore there is no price difference expected between months. PART A REQUIREMENTS: 1. Prepare the Revenues Budget. 2. Prepare the Production Budget (in Units). 3. Prepare the Direct Material Usage Budget and Direct Material Purchases Budget. 4. Prepare the Direct Manufacturing Labor Costs Budget. 5. Prepare the Manufacturing Overhead Costs Budget. 6. Prepare the Ending Inventories Budget 7. Prepare the Cost of Goods Sold Budget. 8. Prepare the Nonmanufacturing Cost Budget. 9. Prepare the Budgeted Income Statements