Question

Requirement 1. Prepare the following budgets. a. Prepare the revenues budget. Revenues Budget For the Month of March Units Selling Price Total revenues Broncos Blankets 140 $ 305 Rams Blankets 195 378 Total b. Prepare the production budget in units. Production Budget For the Month of March Broncos Budgeted units sales Add target ending finished goods inventory Total required units Deduct beginning finished goods inventory Units of finished goods to be produced AN

Answer 1

Dear Student,

As per the HOMEWORKLIB POLICY, only the first four parts of a question should be answered. Kindly take note of it.

https://www.coursehero.com/file/29989386/Module-3-Problemsdocx/

Part A

Revenues Budget For the month of March
	Units	Selling price	Total revenue
Broncos Blankets	140	305	$42700
Rams Blankets	195	378	73710
Total			$116410

Part B

Production Budget For the month of March
	Broncos	Rams
Budgeted unit sales	140	195
Add target ending finished goods inventory	24	29
Total required units	164	224
Deduct beginning finished goods inventory	14	19
Units of finished goods to be produced	150	205

Part C

Direct Materials Usage Budget in Quantity and Dollars For the month of march
	Materials	Total
	Red wool	Black wool	Broncos logo patches	Rams logo patches
Physical units budget
Direct materials required for
Broncos	750		150
Rams		1230		205
Total quantity of direct material to be used	750	1230	150	205
Cost budget
Available from beginning direct materials inventory (under a FIFO cash-flow assumption)
Broncos (40*10); (50*8)	400		400
Rams (20*14); (65*7)		260		455
To be purchased this period
Broncos ((750-40)*11); ((150-50)*8)	7810		800
Rams ((1230-20)*13); ((205-65)*9)		15730		1260
Direct materials to be used this period	$8210	$16010	$1200	$1715	$27135

Direct Materials Purchases Budget For the month of march
	Materials	Total
	Red wool	Black wool	Broncos logo patches	Rams logo patches
Physical units budget
To be used in production	750	1230	150	205
Add target ending inventory	30	20	30	30
Total requirement	780	1250	180	235
Deduct beginning inventory	40	20	50	65
Purchases to be made	740	1230	130	170
Cost budget
Purchases	$8140	$15990	$1040	$1530	$26700

Part D

Direct Manufacturing Labor costs Budget For the month of march
	Output units produced	DMLH per unit	Total DMLH	Hourly wage rate	Total
Broncos Blankets	150	4.0	600	28	$16800
Rams Blankets	205	5.0	1025	28	28700
Total					$45500