Comprehensive operating budget budgeted balance sheet. Slopes, Inc., manufactures and sells snowboards. Slopes manufacture a single model,

Question:

Comprehensive operating budget budgeted balance sheet. Slopes, Inc., manufactures and sells snowboards. Slopes manufacture a single model, the Pipex. In the summer of 2009, Slopes’s management accountant gathered the following data to prepare budgets for 2010:

Materials and labor requirements Direct materials Wood Fiberglass Direct manufacturing labor 5 board feet (b.f.) per sno

Slopes’s CEO expects to sell 1,000 snowboards during 2010 at an estimated retail price of $450 per board. Further the CEO expects 2010 beginning inventory of 100 snowboards and would like to end 2010 with 200 snowboards in stock.

Variable manufacturing overhead is $7 per direct manufacturing labor-hour. There are also $66,000 in fixed manufacturing overhead costs budgeted for 2010. Slopes 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 $250 per sales visit. The marketing plan calls for 30 sales visits during 2010. Finally, there are $30,000 in fixed non-manufacturing costs budgeted for 2010.

Other data includes:

The inventoriable unit cost for ending finished goods inventory on December 31, 2009, is $374.80. Assume Slopes uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations.

Budgeted balances at December 31, 2010, in the selected accounts are:

1. Prepare the 2010 revenues budget (in dollars).

2. Prepare the 2010 production budget (in units).

3. Prepare the direct material usage and purchases budgets for 2010.

4. Prepare a direct manufacturing labor budget for 2010.

5. Prepare a manufacturing overhead budget for 2010.

6. What is the budgeted manufacturing overhead rate for 2010?

7. What is the budgeted manufacturing overhead cost per output unit in 2010?

8. Calculate the cost of a snowboard manufactured in 2010.

9. Prepare an ending inventory budget for both direct materials and finished goods for 2010.

10. Prepare a cost of goods sold budget for 2010.

11. Prepare the budgeted income statement for Slopes, Inc., for the year ending December 31, 2010.

12. Prepare the budgeted balance sheet for Slopes, Inc., as of December 31, 2010.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...