alonde Specialties manufactures, among other things, 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. Additional information follows: The budgeted direct-cost inputs for each product in 2013 are as follows: Knights Blanket Raiders Blanket Red wool fabric 5 yards 0 Black wool fabric 0 6 yards Knight logo patches 1 0 Raider logo patches 0 1 Direct manufacturing labor 4 hours 5 hours Unit data pertaining to the direct materials for March 2013 are as follows: Actual Beginning Direct Materials Inventory (3/1/2013) Knights Blanket Raiders Blanket Red wool fabric 40 yards 0 yards Black wool fabric 0 20 Knight logo patches 50 0 Raider logo patches 0 65 Target Ending Direct Materials Inventory (3/31/2013) Knights Blanket Raiders Blanket Red wool fabric 30 yards 0 yards Black wool fabric 0 30 Knight logo patches 30 0 Raider logo patches 0 30 Unit cost data for direct-cost inputs pertaining to February 2013 and March 2013 are as follows: February 2013 (actual) March 2013 (budgeted) Red wool fabric (per yard) $10 $11 Black wool fabric (per yard) 14 13 Knight logo patches (per patch) 8 8 Raider logo patches (per patch) 7 9 Manufacturing labor cost per hour 27 28 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 2013 is $17 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2013 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 2013 are as follows: Knights Blanket Raiders Blanket Beginning inventory in units 14 19 Beginning inventory in dollars (cost) $1,960 $2,945 Target ending inventory in units 24 29 Budgeted sales for March 2013 are 140 units of the Knights blankets and 195 units of the Raiders blankets. The budgeted selling prices per unit in March 2013 are $305 for the Knights blankets and $378 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 2013. REQUIRED Prepare the following budgets for March 2013: a. Revenues budget b. Production budget in units c. Direct material usage budget and direct material purchases budget
Lalonde Specialties manufactures, among other things, 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. Additional information follows: The budgeted direct-cost inputs for each product in 2013 are as follows:
|
|
Knights Blanket |
Raiders Blanket |
||
|
Red wool fabric |
5 |
yards |
0 |
|
|
Black wool fabric |
0 |
|
6 |
yards |
|
Knight logo patches |
1 |
|
0 |
|
|
Raider logo patches |
0 |
|
1 |
|
|
Direct manufacturing labor |
4 |
hours |
5 |
hours |
Unit data pertaining to the direct materials for March 2013 are as follows:
|
Actual Beginning Direct Materials Inventory (3/1/2013) |
||||
|
|
Knights Blanket |
Raiders Blanket |
||
|
Red wool fabric |
40 |
yards |
0 |
yards |
|
Black wool fabric |
0 |
|
20 |
|
|
Knight logo patches |
50 |
|
0 |
|
|
Raider logo patches |
0 |
|
65 |
|
|
Target Ending Direct Materials Inventory (3/31/2013) |
||||
|
|
Knights Blanket |
Raiders Blanket |
||
|
Red wool fabric |
30 |
yards |
0 |
yards |
|
Black wool fabric |
0 |
|
30 |
|
|
Knight logo patches |
30 |
|
0 |
|
|
Raider logo patches |
0 |
|
30 |
|
Unit cost data for direct-cost inputs pertaining to February 2013 and March 2013 are as follows:
|
|
February 2013 (actual) |
March 2013 (budgeted) |
||
|
Red wool fabric (per yard) |
$10 |
|
$11 |
|
|
Black wool fabric (per yard) |
14 |
|
13 |
|
|
Knight logo patches (per patch) |
8 |
|
8 |
|
|
Raider logo patches (per patch) |
7 |
|
9 |
|
|
|
27 |
|
28 |
|
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 2013 is $17 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for
March 2013 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 2013 are as follows:
|
|
Knights Blanket |
Raiders Blanket |
||
|
Beginning inventory in units |
14 |
|
19 |
|
|
Beginning inventory in dollars (cost) |
$1,960 |
|
$2,945 |
|
|
Target ending inventory in units |
24 |
|
29 |
|
Budgeted sales for March 2013 are 140 units of the Knights blankets and 195 units of the Raiders blankets. The budgeted selling prices per unit in March 2013 are $305 for the Knights blankets and
$378 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 2013. |
REQUIRED
|
Prepare the following budgets for March 2013: |
|
a. |
Revenues budget |
|
|
b. |
Production budget in units |
|
|
c. |
Direct material usage budget and direct material purchases budget |
|
|
d. |
Direct manufacturing labor budget |
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