I need help with Question 1(part c and onwards) and Question 2.

Labo Specialties manufactures, among other things, woolen blankets for the athletic teams of the two local high schools.

Manufacturing overhead (both variable and fixed) is allocated to each blanket on the basis of budgeted direct manufacturing labor-hours per blanket.

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. The budgeted direct-cost inputs for each product in 2017 are as follows: Broncos Blanket Rams Blanket Red wool fabric 5 yards O yards Black wool fabric 0 6 1 0 Broncos logo patches Rams logo patches Direct manufacturing labor 0 1 4 hours 5 hours Unit data pertaining to the direct materials for March 2017 are as follows: Actual Beginning Direct Materials Inventory (3/1/2017) Broncos Blanket Rams Blanket Red wool fabric 40 yards O yards Black wool fabric 0 20 50 0 Broncos logo patches Rams logo patches 0 65 Target Ending Direct Materials Inventory (3/31/2017) Broncos Blanket Rams Blanket Red wool fabric 30 yards O yards Black wool fabric 0 30 Broncos logo patches 30 0 Rams logo patches 0 30 Unit cost data for direct-cost inputs pertaining to February 2017 and March 2017 are as follows: February 2017 (actual) March 2017 (budgeted) $ 10 $ 11 14 13 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 8 8 7 9 27 28 The budgeted variable manufacturing overhead rate for March 2017 is $17 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2017 is $14,625. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. Data relating to finished goods inventory for March 2017 are as follows: Broncos Blanket Rams Blanket 14 19 Beginning inventory in units Beginning inventory in dollars (cost) Target ending inventory in units $ 1,960 $ 2,945 24 29 Budgeted sales for March 2017 are 140 units of the Broncos blankets and 195 units of the Rams blankets. The budgeted selling prices per unit in March 2017 are $305 for the Broncos blankets and $378 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. 1. a. b. Prepare the following budgets for March 2017: Revenues budget Production budget in units c. Direct material usage budget and direct material purchases budget d. Direct manufacturing labor costs budget e. Manufacturing overhead costs budget f. Ending inventories budget (direct materials and finished goods) g. Cost of goods sold budget Suppose Labo 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. 2. Requirement 1. Prepare the following budgets. a. Prepare the revenues budget. Revenues Budget For the Month of March Units Selling Price Broncos Blankets 140 $ 305 $ Total revenues 42,700 73,710 Rams Blankets 195 378 $ 116,410 Total b. Prepare the production budget in units. Production Budget For the Month of March Broncos Rams Budgeted units sales 140 195 29 24 Add target ending finished goods inventory Total required units Deduct beginning finished goods inventory 164 224 14 19 150 205 Units of finished goods to be produced c. Prepare the direct material usage budget and direct material purchases budget. Begin with the physical units portion, then prepare the cost budget portion of the direct material usage budget. (For amounts with a zero balance, make sure to enter "0" in the appropriate cell.) Direct Material Usage Budget in Quantity and Dollars For the Month of March Material Broncos Rams Red wool Black wool logo patches logo patches Total Physical Units Budget Direct materials required for Broncos 750 yds. 150 0 0 yds. 1,230 0 0 205 Rams yds. yds. 209 750 1,230 150 205 yds. yds. Total quantity of direct material to be used Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Broncos Rams To be purchased this period Broncos Rams Direct materials to be used this period 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. The budgeted direct-cost inputs for each product in 2017 are as follows: Broncos Blanket Rams Blanket Red wool fabric 5 yards O yards Black wool fabric 0 6 1 0 Broncos logo patches Rams logo patches Direct manufacturing labor 0 1 4 hours 5 hours Unit data pertaining to the direct materials for March 2017 are as follows: Actual Beginning Direct Materials Inventory (3/1/2017) Broncos Blanket Rams Blanket Red wool fabric 40 yards O yards Black wool fabric 0 20 50 0 Broncos logo patches Rams logo patches 0 65 Target Ending Direct Materials Inventory (3/31/2017) Broncos Blanket Rams Blanket Red wool fabric 30 yards O yards Black wool fabric 0 30 Broncos logo patches 30 0 Rams logo patches 0 30 Unit cost data for direct-cost inputs pertaining to February 2017 and March 2017 are as follows: February 2017 (actual) March 2017 (budgeted) $ 10 $ 11 14 13 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 8 8 7 9 27 28 The budgeted variable manufacturing overhead rate for March 2017 is $17 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2017 is $14,625. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. Data relating to finished goods inventory for March 2017 are as follows: Broncos Blanket Rams Blanket 14 19 Beginning inventory in units Beginning inventory in dollars (cost) Target ending inventory in units $ 1,960 $ 2,945 24 29 Budgeted sales for March 2017 are 140 units of the Broncos blankets and 195 units of the Rams blankets. The budgeted selling prices per unit in March 2017 are $305 for the Broncos blankets and $378 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. 1. a. b. Prepare the following budgets for March 2017: Revenues budget Production budget in units c. Direct material usage budget and direct material purchases budget d. Direct manufacturing labor costs budget e. Manufacturing overhead costs budget f. Ending inventories budget (direct materials and finished goods) g. Cost of goods sold budget Suppose Labo 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. 2. Requirement 1. Prepare the following budgets. a. Prepare the revenues budget. Revenues Budget For the Month of March Units Selling Price Broncos Blankets 140 $ 305 $ Total revenues 42,700 73,710 Rams Blankets 195 378 $ 116,410 Total b. Prepare the production budget in units. Production Budget For the Month of March Broncos Rams Budgeted units sales 140 195 29 24 Add target ending finished goods inventory Total required units Deduct beginning finished goods inventory 164 224 14 19 150 205 Units of finished goods to be produced c. Prepare the direct material usage budget and direct material purchases budget. Begin with the physical units portion, then prepare the cost budget portion of the direct material usage budget. (For amounts with a zero balance, make sure to enter "0" in the appropriate cell.) Direct Material Usage Budget in Quantity and Dollars For the Month of March Material Broncos Rams Red wool Black wool logo patches logo patches Total Physical Units Budget Direct materials required for Broncos 750 yds. 150 0 0 yds. 1,230 0 0 205 Rams yds. yds. 209 750 1,230 150 205 yds. yds. Total quantity of direct material to be used Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Broncos Rams To be purchased this period Broncos Rams Direct materials to be used this period