Cost accounting (14th edition) Chapter 6, problem 28p ...
Budget schedules for a manufacturer.
Logo Specialties manufactures, among other things, woolen blanketsfor the athletic teams of the two local high schools. The companysews the blankets from fabric and sews on a logo patch purchasedfrom the licensed logo store site. The teams are as follows:
ï· Knights, with red blankets and the Knights logo ï· Raiders,with black blankets and the Raider logo
Also, the black blankets are slightly larger than the redblankets.
The budgeted direct-cost inputs for each product in 2012 are asfollows:
Manufacturing overhead (both variable and fixed) is allocated toeach blanket on the basis of budgeted direct manufacturinglabor-hours per blanket. The budgeted variable manufacturingoverhead rate for March 2012 is $15 per direct manufacturinglabor-hour. The budgeted fixed manufacturing overhead for March2012 is $9,200. Both variable and fixed manufacturing overheadcosts are allocated to each unit of finished goods. Data relatingto finished goods inventory for March 2012 are as follows:
Budgeted sales for March 2012 are 120 units of the Knightsblankets and 180 units of the Raiders blankets. The budgetedselling prices per unit in March 2012 are $150 for the Knightsblankets and $175 for the Raiders blankets. Assume the following inyour answer:
ï· Work-in-process inventories are negligible and ignored.
ï· Direct materials inventory and finished goods inventory arecosted using the FIFO
method.
ï· Unit costs of direct materials purchased and finished goods areconstant in March 2012.
Prepare the following budgets for March 2012:
a. Revenues budget
b. Production budget in units
c. Direct material usage budget and direct material purchasesbudget d. Direct manufacturing labor budget
e. Manufacturing overhead budget
f. Ending inventories budget (direct materials and finishedgoods)
g. Cost of goods sold budget
Cost accounting (14th edition) Chapter 6, problem 28p ...
Budget schedules for a manufacturer.
Logo Specialties manufactures, among other things, woolen blanketsfor the athletic teams of the two local high schools. The companysews the blankets from fabric and sews on a logo patch purchasedfrom the licensed logo store site. The teams are as follows:
ï· Knights, with red blankets and the Knights logo ï· Raiders,with black blankets and the Raider logo
Also, the black blankets are slightly larger than the redblankets.
The budgeted direct-cost inputs for each product in 2012 are asfollows:
Manufacturing overhead (both variable and fixed) is allocated toeach blanket on the basis of budgeted direct manufacturinglabor-hours per blanket. The budgeted variable manufacturingoverhead rate for March 2012 is $15 per direct manufacturinglabor-hour. The budgeted fixed manufacturing overhead for March2012 is $9,200. Both variable and fixed manufacturing overheadcosts are allocated to each unit of finished goods. Data relatingto finished goods inventory for March 2012 are as follows:
Budgeted sales for March 2012 are 120 units of the Knightsblankets and 180 units of the Raiders blankets. The budgetedselling prices per unit in March 2012 are $150 for the Knightsblankets and $175 for the Raiders blankets. Assume the following inyour answer:
ï· Work-in-process inventories are negligible and ignored.
ï· Direct materials inventory and finished goods inventory arecosted using the FIFO
method.
ï· Unit costs of direct materials purchased and finished goods areconstant in March 2012.
Prepare the following budgets for March 2012:
a. Revenues budget
b. Production budget in units
c. Direct material usage budget and direct material purchasesbudget d. Direct manufacturing labor budget
e. Manufacturing overhead budget
f. Ending inventories budget (direct materials and finishedgoods)
g. Cost of goods sold budget
