Question Four

Hyper Sports Inc. is a manufacturer of sports uniforms. Among the uniforms they produce are jerseys for the girls netball teams of Rockingham and Mandurah. The company uses fabric to create the jerseys and sews on a logo patch purchased from a licensed store. Details of the teams are as follows:

Rockingham, with teal jerseys and the Rockingham logo

Mandurah, with red jerseys and the Mandurah logo

The budgeted direct cost inputs for each product in 2022 are as follows:

Teal fabric

Red fabric

Rockingham logo patches Mandurah logo patches Direct manufacturing labour

Rockingham

2 metres 0

1

0

3 hours

Mandurah

0

2.5 metres 0

1

4 hours

Data pertaining to the direct materials for April 2022 are as follows:

Actual Beginning Direct Materials Inventory, April 1, 2022

Teal fabric

Red fabric

Rockingham logo patches Mandurah logo patches

Rockingham

18 metres 0

45

0

Mandurah

0

7 metres 0

60

Target Ending Direct Materials Inventory, April 30, 2022

Teal fabric

Red fabric

Rockingham logo patches Mandurah logo patches

Rockingham

16 metres 0

25

0

Mandurah

0

16 metres 0

25

Unit cost data for direct cost inputs pertaining to March 2022 and April 2022 are as follows:

Manufacturing overhead (both variable and fixed) is allocated to each jersey based on budgeted direct manufacturing labour hours per jersey. The budgeted variable manufacturing overhead rate for April 2022 is $16 per direct manufacturing labour hour. The budgeted fixed manufacturing overhead for April 2022 is $14,640. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods.

Data relating to the finished goods inventory for April 2022 are as follows:

Rockingham

Beginning inventory, in units 12 Beginning inventory, in dollars (cost) $ 2,244 Target ending inventory, in units 22

Mandurah

17 $ 4,284

27

March (Actual)

April (Budgeted)

$ 10 11 7 8 27

Teal fabric (per metre)

Red fabric (per metre)

Rockingham logo (per patch) Mandurah logo (per patch) Manufacturing labour cost per hour

$

9 12 7 6 26

Budgeted sales for April 2022 are 130 units of Rockingham jerseys and 190 units of Mandurah jerseys. The budgeted selling prices per unit in April 2022 are $229 for the Rockingham jerseys and $296 for the Mandurah jerseys. 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 cost of direct materials purchased and finished goods are constant in April 2022.

Required:

Prepare the following budgets and computations for April 2022:

a. Revenues budget

b. Production budget in units

c. Direct materials usage budget (in units and dollars)

d. Direct materials purchases budget

e. Direct manufacturing labour costs budget

f. Manufacturing overhead costs budget.

g. Fixed manufacturing overhead rate for April 2022.

h. Ending inventories budget (direct materials and finished goods) (in dollars)

i. Cost of goods sold budget

Question Four Hyper Sports Inc. is a manufacturer of sports uniforms. Among the uniforms they produce are jerseys for the girls netball teams of Rockingham and Mandurah. The company uses fabric to create the jerseys and sews on a logo patch purchased from a licensed store Details of the teams are as follows: Rockingham, with teal jerseys and the Rockingham logo Mandurah, with red jerseys and the Mandurah logo The budgeted direct cost inputs for each product in 2022 are as follows: Rockingham 2 metres Teal fabric Red fabric Rockingham logo patches Mandurah logo patches Direct manufacturing labour 3 hours Data pertaining to the direct materials for April 2022 are as follows: Mandurah 2.5 metres 4 hours Actual Beginning Direct Materials Inventory, April 1, 2022 Rockingham Mandurah Teal fabric 18 metres Red fabric 0 7 metres Rockingham logo patches 45 Mandurah logo patches D Target Ending Direct Materials Inventory, April 30, 2022 Rockingham Mandurah Teal fabric 16 metres Red fabric 16 metres 0 Rockingham logo patches Mandurah logo patches 25 0 Cost Analysis for Decision Making Page 6 ACCT2002 PORTFOLIO Unit cost data for direct cost inputs pertaining to March 2022 and April 2022 are as follows: March (Actual April (Budgeted) $9 Teal fabric (per metre) $ 10 Red fabric (per metre) 12 11 Rockingham logo (per patch) 7 Mandurah logo (per patch) Manufacturing labour cost per hour Manufacturing overhead (both variable and fixed) is allocated to each jersey based on budgeted direct manufacturing labour hours per jersey. The budgeted variable manufacturing overhead rate for April 2022 is 516 per direct manufacturing labour hour. The budgeted fixed manufacturing overhead for April 2022 is $14.640. Both variable and ACCT2002 PORTFOLIO 712 Unit cost data for direct cost inputs pertaining to March 2022 and April 2022 are as follows: March Actual (Budete Teal fabric (per metre) $9 S 10 Red fabric (per metre) 12 11 Rockingham logo (per patch) 7 Mandurah logo (per patch) 6 Manufacturing labour cost per hour 27 Manufacturing overhead (both variable and fixed) is allocated to each jersey based on budgeted direct manufacturing labour hours per jersey. The budgeted variable manufacturing overhead rate for April 2022 is $16 per direct manufacturing labour hour. The budgeted fixed manufacturing overhead for April 2022 is $14,640. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. Data relating to the finished goods inventory for April 2022 are as follows: Mandurah Rockingham 12 17 Beginning inventory, in units Beginning inventory, in dollars (cost) Target ending inventory, in units $2,244 $4,284 22 27 Budgeted sales for April 2022 are 130 units of Rockingham jerseys and 190 units of Mandurah jerseys. The budgeted selling prices per unit in April 2022 are $229 for the Rockingham jerseys and $296 for the Mandurah jerseys. 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 cost of direct materials purchased and finished goods are constant in April 2022. Cest Analysis for Decision Making Page 7 ACCT2002 PORTFOLIO Required: Prepare the following budgets and computations for April 2022: a Revenues budget b. Production budget in units Direct materials usage budget (in units and dollar) d. Direct materials purchases budget e. Direct manufacturing labour costs budget f. Manufacturing overhead costs budget. E Fixed manufacturing overhead rate for April 2022. h. Ending inventories budget (direct materials and finished goods) in dollar) Cast of roods sold budet 7 8 Question Four Hyper Sports Inc. is a manufacturer of sports uniforms. Among the uniforms they produce are jerseys for the girls netball teams of Rockingham and Mandurah. The company uses fabric to create the jerseys and sews on a logo patch purchased from a licensed store. Details of the teams are as follows: 1 5 - Rockingham, with teal jerseys and the Rockingham logo Mandurah, with red jerseys and the Mandurah logo The budgeted direct cost inputs for each product in 2022 are as follows: Rockingham Mandurah 0 10 Teal fabric 2 metres 11. Red fabric 0 2.5 metres 12 Rockingham logo patches 1 0 13 Mandurah logo patches 0 1 14 Direct manufacturing labour 3 hours 4 hours 15 16 Data pertaining to the direct materials for April 2022 are as follows: 17 Actual Beginning Direct Materials Inventory. April 1. 2022 5 7 8 D B 16 Data pertaining to the direct materials for April 2022 are as follows: 17 Actual Beginning Direct Materials Inventory, April 1, 2022 18 Rockingham Mandurah 19 Teal fabric 18 metres 0 20 Red fabric 0 7 metres 21 Rockingham logo patches 45 0 22 Mandurah logo patches 0 60 23 24 25 Target Ending Direct Materials Inventory, April 30, 2022 26 Rockingham Mandurah 0 27 Teal fabric 16 metres 28 Red fabric 0 16 metres 29 Rockingham logo patches +25 0 30 Mandurah logo patches 0 25 31 32 Unit cost data for direct cost inputs pertaining to March 2022 and April 2022 are as follows: 33 March (Actual) April (Budgeted) 34 Teal fabric (per metre) $9 $10 11 35 Red fabric (per metre) 12 ac Deakinskamle for bl 2 *** Question Three Question Four Accessibility investigate 31 32 Unit cost data for direct cost inputs pertaining to March 2022 and April 2022 are as follows: 33 March (Actual) April (Budgeted) 34 Teal fabric (per metre) $9 $10 35 Red fabric (per metre) 12 11 36 Rockingham logo (per patch) 7 7 37 Mandurah logo (per patch) 6 8 38 Manufacturing labour cost per hour 26 27 39 Manufacturing overhead (both variable and fixed) is allocated to each jersey based on budgeted direct manufacturing labour hours per jersey. The budgeted variable manufacturing overhead rate for April 2022 is $16 per direct manufacturing labour hour. The budgeted fixed manufacturing overhead for April 2022 is $14,640. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. 40 41 42 Data relating to the finished goods inventory for April 2022 are as follows: 43 Rockingham Mandurah Beginning inventory, in units 12 45 Beginning inventory, in dollars (cost) Target ending inventory in units 2,244 $ 22 46 Question Three Question Four 17 4,284 27 -Work-in-process inventories are negligible and ignored. - Direct materials inventory and finished goods inventory are costed using the FIFO method. - Unit cost of direct materials purchased and finished goods are constant in April 2022. 1 Required: D 5 Prepare the following budgets and computations for April 2022: 7 8 a. Revenue budget 9 b. Production budget in units c. Direct materials usage budget (in units and dollars) d. Direct materials purchases budget 52 e. Direct manufacturing labour costs budget + 53 f. Manufacturing overhead costs budget 64 g. Fixed manufacturing overhead rate for April 2022 65 h. Ending inventories budget (direct materials and finished goods) (in dollars) i. Cost of goods sold budget 66 67 68 a. Revenue budget 69 0 51 Question Four Hyper Sports Inc. is a manufacturer of sports uniforms. Among the uniforms they produce are jerseys for the girls netball teams of Rockingham and Mandurah. The company uses fabric to create the jerseys and sews on a logo patch purchased from a licensed store Details of the teams are as follows: Rockingham, with teal jerseys and the Rockingham logo Mandurah, with red jerseys and the Mandurah logo The budgeted direct cost inputs for each product in 2022 are as follows: Rockingham 2 metres Teal fabric Red fabric Rockingham logo patches Mandurah logo patches Direct manufacturing labour 3 hours Data pertaining to the direct materials for April 2022 are as follows: Mandurah 2.5 metres 4 hours Actual Beginning Direct Materials Inventory, April 1, 2022 Rockingham Mandurah Teal fabric 18 metres Red fabric 0 7 metres Rockingham logo patches 45 Mandurah logo patches D Target Ending Direct Materials Inventory, April 30, 2022 Rockingham Mandurah Teal fabric 16 metres Red fabric 16 metres 0 Rockingham logo patches Mandurah logo patches 25 0 Cost Analysis for Decision Making Page 6 ACCT2002 PORTFOLIO Unit cost data for direct cost inputs pertaining to March 2022 and April 2022 are as follows: March (Actual April (Budgeted) $9 Teal fabric (per metre) $ 10 Red fabric (per metre) 12 11 Rockingham logo (per patch) 7 Mandurah logo (per patch) Manufacturing labour cost per hour Manufacturing overhead (both variable and fixed) is allocated to each jersey based on budgeted direct manufacturing labour hours per jersey. The budgeted variable manufacturing overhead rate for April 2022 is 516 per direct manufacturing labour hour. The budgeted fixed manufacturing overhead for April 2022 is $14.640. Both variable and ACCT2002 PORTFOLIO 712 Unit cost data for direct cost inputs pertaining to March 2022 and April 2022 are as follows: March Actual (Budete Teal fabric (per metre) $9 S 10 Red fabric (per metre) 12 11 Rockingham logo (per patch) 7 Mandurah logo (per patch) 6 Manufacturing labour cost per hour 27 Manufacturing overhead (both variable and fixed) is allocated to each jersey based on budgeted direct manufacturing labour hours per jersey. The budgeted variable manufacturing overhead rate for April 2022 is $16 per direct manufacturing labour hour. The budgeted fixed manufacturing overhead for April 2022 is $14,640. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. Data relating to the finished goods inventory for April 2022 are as follows: Mandurah Rockingham 12 17 Beginning inventory, in units Beginning inventory, in dollars (cost) Target ending inventory, in units $2,244 $4,284 22 27 Budgeted sales for April 2022 are 130 units of Rockingham jerseys and 190 units of Mandurah jerseys. The budgeted selling prices per unit in April 2022 are $229 for the Rockingham jerseys and $296 for the Mandurah jerseys. 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 cost of direct materials purchased and finished goods are constant in April 2022. Cest Analysis for Decision Making Page 7 ACCT2002 PORTFOLIO Required: Prepare the following budgets and computations for April 2022: a Revenues budget b. Production budget in units Direct materials usage budget (in units and dollar) d. Direct materials purchases budget e. Direct manufacturing labour costs budget f. Manufacturing overhead costs budget. E Fixed manufacturing overhead rate for April 2022. h. Ending inventories budget (direct materials and finished goods) in dollar) Cast of roods sold budet 7 8 Question Four Hyper Sports Inc. is a manufacturer of sports uniforms. Among the uniforms they produce are jerseys for the girls netball teams of Rockingham and Mandurah. The company uses fabric to create the jerseys and sews on a logo patch purchased from a licensed store. Details of the teams are as follows: 1 5 - Rockingham, with teal jerseys and the Rockingham logo Mandurah, with red jerseys and the Mandurah logo The budgeted direct cost inputs for each product in 2022 are as follows: Rockingham Mandurah 0 10 Teal fabric 2 metres 11. Red fabric 0 2.5 metres 12 Rockingham logo patches 1 0 13 Mandurah logo patches 0 1 14 Direct manufacturing labour 3 hours 4 hours 15 16 Data pertaining to the direct materials for April 2022 are as follows: 17 Actual Beginning Direct Materials Inventory. April 1. 2022 5 7 8 D B 16 Data pertaining to the direct materials for April 2022 are as follows: 17 Actual Beginning Direct Materials Inventory, April 1, 2022 18 Rockingham Mandurah 19 Teal fabric 18 metres 0 20 Red fabric 0 7 metres 21 Rockingham logo patches 45 0 22 Mandurah logo patches 0 60 23 24 25 Target Ending Direct Materials Inventory, April 30, 2022 26 Rockingham Mandurah 0 27 Teal fabric 16 metres 28 Red fabric 0 16 metres 29 Rockingham logo patches +25 0 30 Mandurah logo patches 0 25 31 32 Unit cost data for direct cost inputs pertaining to March 2022 and April 2022 are as follows: 33 March (Actual) April (Budgeted) 34 Teal fabric (per metre) $9 $10 11 35 Red fabric (per metre) 12 ac Deakinskamle for bl 2 *** Question Three Question Four Accessibility investigate 31 32 Unit cost data for direct cost inputs pertaining to March 2022 and April 2022 are as follows: 33 March (Actual) April (Budgeted) 34 Teal fabric (per metre) $9 $10 35 Red fabric (per metre) 12 11 36 Rockingham logo (per patch) 7 7 37 Mandurah logo (per patch) 6 8 38 Manufacturing labour cost per hour 26 27 39 Manufacturing overhead (both variable and fixed) is allocated to each jersey based on budgeted direct manufacturing labour hours per jersey. The budgeted variable manufacturing overhead rate for April 2022 is $16 per direct manufacturing labour hour. The budgeted fixed manufacturing overhead for April 2022 is $14,640. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. 40 41 42 Data relating to the finished goods inventory for April 2022 are as follows: 43 Rockingham Mandurah Beginning inventory, in units 12 45 Beginning inventory, in dollars (cost) Target ending inventory in units 2,244 $ 22 46 Question Three Question Four 17 4,284 27 -Work-in-process inventories are negligible and ignored. - Direct materials inventory and finished goods inventory are costed using the FIFO method. - Unit cost of direct materials purchased and finished goods are constant in April 2022. 1 Required: D 5 Prepare the following budgets and computations for April 2022: 7 8 a. Revenue budget 9 b. Production budget in units c. Direct materials usage budget (in units and dollars) d. Direct materials purchases budget 52 e. Direct manufacturing labour costs budget + 53 f. Manufacturing overhead costs budget 64 g. Fixed manufacturing overhead rate for April 2022 65 h. Ending inventories budget (direct materials and finished goods) (in dollars) i. Cost of goods sold budget 66 67 68 a. Revenue budget 69 0 51