requirements 3-7

Units Skis, Inc., manufactures and sells snowboards. Skis manufactures a single model, Other data include: the Pipex In late 2017, Skis's management accountant gathered the following (Click the icon to view the other data.) data to prepare budgets for January 2018: Click the icon to view the materials and labor requirements) The inventoriable unit cost for ending finished goods inventory on December 31, 2017, is $300.00. Assume Skin uses a FIFO inventory method for both direct Click the icon to view the additional information) materials and finished goods. Ignore work in process in your calculations. (Click the icon to view the direct materials inventories) Read the requirements (Click the icon to view the additional information) Selling price Total revenues Snowboards 2,000 $ 650 $ 1,300,000 Requirement 2. Prepare the January 2018 production budget (in units) Production Budget For January 2018 Budgeted units sales 2,000 500 Add targetending finished goods inventory Total required units 2,500 Deduct beginning finished goods inventory 300 Units of finished goods to be produced 2.200 Requirement 3. Prepare the direct material usage and purchases budgets for January 2018 Begin with the physical units portion, then prepare the cost budget portion of the direct material usage budget Direct Material Usage Budget in Quantity and Dollars ormation.) id Data Table Materials and Labor Requirements Direct materials ar ud 20 Wood Fiberglass Direct manufacturing labor 10 board feet (b.f.) per snowboard 8 yards per snowboard 5 hours per snowboard Find Print Done inv Buc to for lonninny 2010 More Info Skis's CEO expects to sell 2,000 snowboards during January 2018 at an estimated retail price of $650 per board. Further, the CEO expects 2018 beginning inventory of 300 snowboards and would like to end January 2018 with 500 snowboards in stock Print Done ata Table Direct Materials Inventories Beginning Inventory 1/1/2018 2,030 b.f. Ending Inventory 1/31/2018 1,530 b.f. Wood Fiberglass 1,030 yards 2,030 yards Print Done Data Table e11 2017 Unit Price Ball 2018 Unit Price Wood $ $ on Fiberglass Direct manufacturing labor 31.00 per b.f. 7.00 per yard 27.00 per hour $ 33.00 per b.f. 8.00 per yard 28.00 per hour dal $ od Print Done 1. 2. 3. 4. 5. 6. 7. 8. 9. Prepare the January 2018 revenues budget (in dollars). Prepare the January 2018 production budget (in units). Prepare the direct material usage and purchases budgets for January 2018. Prepare a direct manufacturing labor costs budget for January 2018. Prepare a manufacturing overhead costs budget for January 2018. What is the budgeted manufacturing overhead rate for January 2018? What is the budgeted manufacturing overhead cost per output unit in January 2018? Calculate the cost of a snowboard manufactured in January 2018. Prepare an ending inventory budget for both direct materials and finished goods for January 2018. Prepare a cost of goods sold budget for January 2018. Prepare the budgeted income statement for Skis, Inc., for January 2018. What questions might the CEO ask the management team when reviewing the budget? Should the CEO set stretch targets? Explain briefly. How does preparing the budget help Skis's management team better manage the company? 10. 11. 12. 13