Prepare the following budgets for march 2012a revenues

Reference no: EM13486062

Budgetschedulesforamanufacturer.LogoSpecialtiesmanufactures,amongotherthings,woolen blankets for the athletic teams of the two local high schools. The company sews the blankets from fabric and sews on a logo patch purchased from the licensed logo store site. Knights, with red blankets and the Knights logoRaiders, with black blankets and the Raider logo ?Also, the black blankets are slightly larger than the red blankets. The budgeted direct-cost inputs for each product in 2012 are as follows: ?Unit data pertaining to the direct materials for March 2012 are as follow:

Knights Blanket Raiders Blanket

Red wool fabric 3 yards 0

Black wool fabric 0 3.3 yards

Knight logo patches 1 0

Raider logo patches 0 1

Direct manufacturing labor 1.5 hours 2 hours

Actual Beginning Direct Materials Inventory (3/1/2012)

Knights Blanket Raiders Blanket

Red wool fabric 30 yards 0

Black wool fabric 0 10 yards

Knight logo patches 40 0

Raider logo patches 0 55

Target Ending Direct Materials Inventory (3/31/2012)

Knights Blanket Raiders Blanket

Red wool fabric 20 yards 0

Black wool fabric 0 20 yards

Knight logo patches 20 0

Raider logo patches 0 20

Unit cost data for direct-cost inputs pertaining to February 2012 and March 2012 are as follows:

February 2012 (actual) March 2012 (budgeted)

Red wool fabric (per yard) $8 $9

Black wool fabric (per yard) 10 9

Knight logo patches (per patch) 6 6

Raider logo patches (per patch) 5 7

Manufacturing labor cost per hour 25 26

MASTER BUDGET AND RESPONSIBILITY ACCOUNTING

Knights Blankets Raiders Blankets

Beginning inventory in units 10 15

Beginning inventory in dollars (cost) $1,210 $2,235

Target ending inventory in units 20 25

Required

Manufacturing overhead (both variable and fixed) is allocated to each blanket on the basis of budgeted direct manufacturing labor-hours per blanket. The budgeted variable manufacturing overhead rate for March 2012 is $15 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2012 is $9,200. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods.

Data relating to finished goods inventory for March 2012 are as follows:

Budgeted sales for March 2012 are 120 units of the Knights blankets and 180 units of the Raiders blankets. The budgeted selling prices per unit in March 2012 are $150 for the Knights blankets and $175 for the Raiders blankets. 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 costs of direct materials purchased and finished goods are constant in March 2012.

1. Prepare the following budgets for March 2012:?a. Revenues budget?b. Production budget in units?c. Direct material usage budget and direct material purchases budget d. Direct manufacturing labor budget

e. Manufacturing overhead budget?f. Ending inventories budget (direct materials and finished goods)

g. Cost of goods sold budget

2. Suppose Logo Specia lties decides to incorporate continuous improvement into its budgeting process. Describe two areas where it could incorporate continuous improvement into the budget schedules in requirement 1.

Reference no: EM13486062

Questions Cloud

Franco electronics currently sells a camera for 300 an : franco electronics currently sells a camera for 300. an aggressive competitor has announced plans for a similar product

A company purchased 2000 of merchandise on nov 2 with terms : a company purchased 2000 of merchandise on nov. 2 with terms 210 n30. on nov. 8 it returned 500 worth of merchandise.

The arlington property development co has a 10000 note : the arlington property development co. has a 10000 note receivable from a customer due in 3 years. how much is the

You have a quick ratio of 200x 31500 in cash 17500 in ar : you have a quick ratio of 2.00x 31500 in cash 17500 in ar some inventory total current assets of 70000amp total current

Prepare the following budgets for march 2012a revenues : budgetschedulesforamanufacturer.logospecialtiesmanufacturesamongotherthingswoolen blankets for the athletic teams of

Create a spreadsheet to compute the npv and payback period : create a spreadsheet to compute the npv and payback period to assist with a purchase decision. use to results to answer

Lee provo is paid 20 per hour plus time-and-one-half for : on january 1 2012 phil sonics corporation issued 2000000 of 7.5 bonds dated january 1. interest is payable

A company had expenses other than cost of goods sold of : 1.a company had sales of 699000 and cost of goods sold of 280000. its gross profit

Investment securities of 10000 these securities are common : a company reports the following information as of the end of the year. investment securities of 10000. these securities

User Account

All Pages