Question.

Wear It Manufacturer creates hoodies for recent Superbowl Champions.The company sews the

Hoodies from wool fabric and attaches a team logo patch.Data relating to the current team is as follows:

Seahawks - blue hoodies with a Seahawk logo.

The budgeted direct cost inputs for each hoodie this year are as follows:

Blue Wool fabric

3

metres

Seahawks logo patches

1

Direct manufacturing labour

1.5

hours

Unit data pertaining to the direct materials for March are as follows:

Actual Beginning Direct Materials Inventory (June 1^st)

Blue Wool fabric

32

metres

Seahawks logo patches

40

Target Ending Direct Materials Inventory (June 30^th)

Blue Wool fabric

22

metres

Seahawks logo patches

20

Unit cost data relating to direct-cost inputs for May and June are as follows:

May (Actual)

June (Budgeted)

Blue Wool fabric (per metre)

$8.00

$9.00

Seahawks logo patches (per patch)

$6.00

$6.00

Direct manufacturing labour cost per hour

$26.00

$27.00

Manufacturing overhead (both variable and fixed) is allocated to each hoodie on the basis of budgeted

Direct manufacturing labour-hours per hoodie.The budgeted variable manufacturing rate for June is

$17 per direct manufacturing labour-hour.The budgeted fixed manufacturing overhead for June is

$4,295.Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods.

Non-manufacturing costs for General &Administration are $1,180.

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

Beginning Inventory

15

Beginning inventory in dollars

$1,350

Target ending inventory in units

30

Budgeted sales for June are 135 units of the Seahawks hoodies. The budgeted selling price per unit in June is $151.

Assume the following in your answer:

Work in process inventory are negligible and ignored.

Direct materials inventory and finished goods inventory are costed using the FIFO method.

Purpose

The overall purpose of this assignment is to enhance your skills with Excel relating to linking raw data into a schedule that will be useful to managers.It will help you integrate and understand the various components of an operating budget in master budget.

Required:

During only our class time, in Excel, create a solution with all of the following items.Any cells that can be linked need to be. Your solution needs to have the following items labeled in the following order:

a.Revenue Budget (2 marks)

b.Production Budget (2 marks)

c.Direct material usage budget (2 marks)

d.Direct material purchase budget (2 marks)

e.Direct manufacturing labor budget (2 marks)

f.Manufacturing overhead budget (both variable and fixed) (2 marks)

g.Computation of Unit Costs of Finished Goods (2 marks)

h.Ending inventory budget (2 marks)

i.Cost of Goods Sold budget (2 marks)

j.Budgeted Income Statement (2 marks)