Snows, Inc., manufactures and sells snowboards. Snows manufactures a single model, the Pipex. In late 2017, Snows's management accountant gathered the following data to prepare budgets for January 2018: (Click the icon to view the materials and labor requirements) i (Click the icon to view the additional information.) (Click the icon to view the direct materials inventories) (Click the icon to view the additional information.) Other data include: (Click the icon to view the other data.) The inventoriable unit cost for ending finished goods inventory on December 31, 2017, is $300.00. Assume Snows uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. Read the requirements. Requirement 1. Prepare the January 2018 revenues budget (in dollars). Data Table Data Table Revenue Budget For January 2018 Units Selling price 2017 Unit Price 2018 Unit Price Total revenues Wood $ $ 33.00 per b.f. Snowboards Direct Materials Inventories Beginning Inventory 1/1/2018 Ending Inventory 1/31/2018 2,030 b.f. 1,530 b.f 1,030 yards 2,030 yards Wood $ 31.00 per b.f. 7.00 per yard 27.00 per hour Fiberglass Direct manufacturing labor $ 8.00 per yard 28.00 per hour Fiberglass $ Data Table More Info 0 Requirements Materials and Labor Requirements Direct materials Wood Variable manufacturing overhead is $9 per direct manufacturing labor-hour. There are $55,000 in fixed manufacturing overhead costs budgeted for January 2018. Snows combines both variable and fixed manufacturing overhead into a single rate based on direct manufacturing labor-hours. Variable marketing costs are allocated at the rate of $280 per sales visit. The marketing plan calls for 37 sales visits during January 2018. Finally, there are $34,000 in fixed nonmanufacturing costs budgeted for January 2018 10 board feet (b.f.) per snowboard 8 yards per snowboard 5 hours per snowboard Fiberglass Direct manufacturing labor More Info Print Done 1. Prepare the January 2018 revenues budget (in dollars). 2. Prepare the January 2018 production budget (in units). 3. Prepare the direct material usage and purchases budgets for January 2018 4. Prepare a direct manufacturing labor costs budget for January 2018. 5. Prepare a manufacturing overhead costs budget for January 2018. 6. What is the budgeted manufacturing overhead rate for January 2018? 7. What is the budgeted manufacturing overhead cost per output unit in January 2018? Calculate the cost of a snowboard manufactured in January 2018. 9. Prepare an ending inventory budget for both direct materials and finished goods for January 2018 10. Prepare a cost of goods sold budget for January 2018. 11. Prepare the budgeted income statement for Snows, 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. 13. How does preparing the budget help Snows's management team better manage the company? 8. Snows'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. 12. Print Done