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Skula's Inc. manufactures and sells a variety of snowboards. The accountant is preparing the budget for 2017. You have gathered the following information. The firm
| Skula's Inc. manufactures and sells a variety of snowboards. The accountant is preparing the budget for 2017. You | |||||
| have gathered the following information. The firm uses a normal costing system, i.e., uses a predetermined OH rate | |||||
| OH for costing purposes. | |||||
| DM | 2016 | 2017 | |||
| wood (board feet per snowboard) | 9.00 | 9.00 | |||
| wood (cost per board foot) | $18.00 | $18.00 | |||
| DL | 2016 | 2017 | |||
| DL (hours per snowboard) | 5.00 | 5.00 | |||
| DL wage rate per hour | $29.00 | $29.00 | |||
| 2016 | 2017 | ||||
| manufacturing OH per snowboard | $150.00 | $150.00 | |||
| 2017 sales estimate (# snowboards) | 12,000 | ||||
| selling price per snowboard | $600.00 | ||||
| target | |||||
| Inventories | 2016 | 2017 | |||
| DM | $340,200 | $291,600 | |||
| FG | $502,700 | $959,700 | |||
What is the full manufacturing cost of a snowboard for both 2016 and 2017?
How many snowboards are in inventory at the end of 2016?
What is the budgeted production volume for 2017?
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Financial And Managerial Accounting Working Papers Volume I
Authors: Belverd E. Needles
7th Edition
061839365X, 978-0618393657
