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. The teams are as follows:
Knights, with red blankets and the Knights logo
Raiders, 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 follows:
Requirements:
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. SupposeLogoSpecialtiesdecidestoincorporatecontinuousimprovementintoitsbudgetingprocess. Describe two areas where it could incorporate continuous improvement into the budget schedules in requirement 1.