= Homework: Week Five Assignment Question list Question 1 Question 2 K Question 1, P6-35 (similar to) Part 1 of 12 HW Score: 0%, 0 of 5 points Points: 0 of 1 Lee Specialties manufactures, among other things, woolen blankets for the athletic teams of the two local high schools. (Click the icon to view additional information.) (Click the icon to view the budgeted direct-cost.) (Click the icon to view the direct materials.) (Click the icon to view the direct-cost inputs.) Save Manufacturing overhead (both variable and fixed) is allocated to each blanket on the basis of budgeted direct manufacturing labor-hours per blanket. (Click the icon to view the overhead information.) (Click the icon to view the finished goods inventory.) (Click the icon to view additional information.) Read the requirements. Question 3 Requirement 1. Prepare the following budgets. a. Prepare the revenues budget. Question 4 Revenues Budget Question 5 For the Month of March Units Selling Price Total revenues Broncos Blankets Rams Blankets 150 $ 200 393 474 Total Additional Blanket Information 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: Broncos, with red blankets and the Broncos logo Rams, with black blankets and the Rams logo Also, the black blankets are slightly larger than the red blankets. Print Done - X Budgeted Direct-Cost Inputs Red wool fabric Black wool fabric The budgeted direct-cost inputs for each product in 2017 are as follows: Rams Blanket 0 yards 7 Broncos Blanket 6 yards 0 Broncos logo patches 1 0 Rams logo patches 0 1 Direct manufacturing labor 5 hours 6 hours Print Done - X Direct Materials Unit data pertaining to the direct materials for March 2017 are as follows: Actual Beginning Direct Materials Inventory (3/1/2017) Red wool fabric Black wool fabric Broncos logo patches Rams logo patches Broncos Blanket Rams Blanket 45 yards 0 yards 0 25 55 0 0 70 Target Ending Direct Materials Inventory (3/31/2017) Broncos Blanket Rams Blanket Red wool fabric 35 yards 0 yards Black wool fabric 0 35 Broncos logo patches 35 0 Rams logo patches 0 35 Print Done - Direct-Cost Inputs Unit cost data for direct-cost inputs pertaining to February 2017 and March 2017 are as follows: March 2017 (budgeted) Red wool fabric (per yard) Black wool fabric (per yard) Broncos logo patches (per patch) Rams logo patches (per patch) Manufacturing labor cost per hour February 2017 (actual) $ 11 $ 12 16 15 9 9 8 10 28 29 Print Done - Manufacturing Overhead Information The budgeted variable manufacturing overhead rate for March 2017 is $18 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2017 is $16,480. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. Print Done - Finished Goods Inventory Data relating to finished goods inventory for March 2017 are as follows: Broncos Blanket Rams Blanket Beginning inventory in units 16 21 Beginning inventory in dollars (cost) $ 2,400 $ 3,276 Target ending inventory in units 26 31 Print Done Sales and Other Information Budgeted sales for March 2017 are 150 units of the Broncos blankets and 200 units of the Rams blankets. The budgeted selling prices per unit in March 2017 are $393 for the Broncos blankets and $474 for the Rams 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 2017. Print Done - Requirements 1. Prepare the following budgets for March 2017: a. b. C. d. e. Revenues budget Production budget in units Direct material usage budget and direct material purchases budget Direct manufacturing labor costs budget Manufacturing overhead costs budget f. Ending inventories budget (direct materials and finished goods) g. Cost of goods sold budget 2. Suppose Lee Specialties 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. Print Done - X