- Lynsay Specialties Manufactures Among Other Things Woolen Blankets For The Athletic Teams Of The Two Local High School 1 (28.25 KiB) Viewed 58 times
- x Requirements 1. Prepare the following budgets for March 2020: a. Revenues budget b. 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 2. Suppose Lynsay 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.
- - X Direct Materials Budgeted Direct-Cost Inputs The budgeted direct-cost inputs for each product in 2020 are as follows: Broncos Blanket 12 yards 0 yards Rams Blanket O yards 13 yards Red wool fabric Black wool fabric Broncos logo patches Rams logo patches Direct manufacturing labor Data pertaining to the direct materials for March 2020 are as follows: Actual Beginning Direct Materials Inventory, March 1, 2020 Broncos Blanket Rams Blanket Red wool fabric 75 yards 0 yards Black wool fabric 0 yards 55 yards Broncos logo patches 85 0 Rams logo patches 0 100 1 0 0 0 1 1 11 hours 12 hours - X Direct-Cost Inputs Target Ending Direct Materials Inventory, March 31, 2020 Broncos Blanket Rams Blanket Red wool fabric 65 yards 0 yards Black wool fabric 0 yards 65 yards Broncos logo patches 65 0 Rams logo patches 0 65 Unit cost data for direct-cost inputs pertaining to February 2020 and March 2020 are as follows: February 2020 (actual) March 2020 (budgeted) Red wool fabric (per yard) $ 17 $ 18 Black wool fabric (per yard) 28 27 Broncos logo patches (per patch) 15 15 Rams logo patches (per patch) 14 16 Manufacturing labor cost per hour 34 35 Print Done
Manufacturing Overhead Information Sales and Other Information The budgeted variable manufacturing overhead rate for March 2020 is $24 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2020 is $47,700. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. Budgeted sales for March 2020 are 210 units of the Broncos blankets and 230 units of the Rams blankets. The budgeted selling prices per unit in March 2020 are $1,124 for the Broncos blankets and $1,215 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 2020. Print Done Print Done Х Additional Blanket Information Finished Goods Inventory 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 Data relating to finished goods inventory for March 2020 are as follows: Broncos Blanket Rams Blanket Beginning inventory in units 28 33 Beginning inventory in dollars (cost) $ 5,880 $ 5,346 Target ending inventory in units 38 43