Question

Skulas, Inc., manufactures and sells Skulas manufactures a single​ model, the Pipex. In late 2017​, Skulas​'s management accountant gathered the following data to prepare budgets for January 2018​:

Data Table

Materials and Labor Requirements
Direct materials
Wood	9	board feet (b.f.) per snowboard
Fiberglass	7	yards per snowboard
Direct manufacturing labor	8	hours per snowboard

Skulas​'s CEO expects to sell 1 comma 300 snowboards during January 2018 at an estimated retail price of $ 650 per board.​Further, the CEO expects 2018 beginning inventory of 600 snowboards and would like to end January 2018 with 600 snowboards in stock.

Direct Materials Inventories
	Beginning Inventory 1/1/2018		Ending Inventory 1/31/2018
Wood	2,020	b.f.	1,520	b.f.
Fiberglass	1,020	yards	2,020	yards

Variable manufacturing overhead is $ 8 per direct manufacturing​labor-hour. There are also $ 20 comma 800 in fixed manufacturing overhead costs budgeted for January 2018. Skulas combines both variable and fixed manufacturing overhead into a single rate based on direct manufacturing​ labor-hours. Variable marketing costs are allocated at the rate of $ 270 per sales visit. The marketing plan calls for 36 sales visits during January 2018. ​Finally, there are $ 33 comma 000 in fixed nonmanufacturing costs budgeted for January 2018.

Other data​ include:

Data Table

	2017 Unit Price		2018 Unit Price
Wood	$30.00	per b.f.	$32.00	per b.f.
Fiberglass	$6.00	per yard	$7.00	per yard
Direct manufacturing labor	$26.00	per hour	$27.00	per hour

The inventoriable unit cost for ending finished goods inventory on December​ 31, 2017​, is ​$250.00. Assume Skulas uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations.

1.Prepare the January 2018 revenues budget​ (in dollars).
2.Prepare the January 2018 production budget​ (in units).
3.Prepare the direct material usage and purchases budgets for January 2018.
4.Prepare a direct manufacturing labor costs budget for January 2018.
5.Prepare a manufacturing overhead costs budget for January 2018.
6.What is the budgeted manufacturing overhead rate for January 2018​?
7.What is the budgeted manufacturing overhead cost per output unit in January 2018​?
8.Calculate the cost of a snowboard manufactured in January 2018.
9.Prepare an ending inventory budget for both direct materials and finished goods for January 2018.
10.Prepare a cost of goods sold budget for January 2018.
11.Prepare the budgeted income statement for Skulas​, ​Inc., for January 2018.
12.What questions might the CEO ask the management team when reviewing the​ budget? Should the CEO set stretch​ targets? Explain briefly.
13.How does preparing the budget help Skulas​'s management team better manage the​ company?

Requirement 1. Prepare the January 2018 revenues budget (in dollars). Revenue Budget For January 2018 Units Selling price Total revenues Snowboards

plz do all the requirement, and use computer writing not hand writing, thanks so much

Answer 1

Dear Student, as per the HOMEWORKLIB POLICY, in questions consisting of several parts, first four parts should be answered.
I have completed 9 parts.
please post other parts separately.
thank you.

Revenue Budget For January 2018 Units Selling Price Total Revenues 1,300 650 845,000 Direct Material Usage Budget in Quantity and Dollars For January 2018 Material Wood Fiberglass Pyhsical Units Budget Snowboards Total 9,100 yds Production Budget For January 2018 Budgeted Unit Sales Add target Finished Goods Ending Inventory Total Required Units Deduct Beginning Finsihed Goods Inventory Units of Finished Goods to be produced 1,300 600 1,900 600 1,300 Diect Material required for Snowboards 11,700 b.f. Cost Budget Available from beginning direct material inventory (Under a FIFO cost-flow assumption) Wood 60,600 Fiberglass To be purchased this period Wood 309,760 Fiberglass Direct Material to be used this period 370,360 6,120 1,960 8,080 378,440

Total Direct Material Purchases Budget For January 2018 Material Wood Fiberglass Pyhsical Units Budget To be used in production 11,700 b.f 9,100 yds Add target ending inventory 1,520 b.f 2,020 yds Total requirement 13,220 b.f 11,120 yds Deduct Beginning Inventory 2,020 b.f 1,020 yds Purchases to be made 11,200 b.f 10,100 yds Cost Budget Purchases 336,000 70,700 406,700 Direct manufacturing Labour Cost Budget For January 2018 Hourly Output Units DMLH per Total wage Produced unit Hours Rate 1,300 8 10,400 27 Total Snowboards 280,800

Expected production for the period 10,400 Variable Overhead rate per DMLH = Variable Manufacturing Overhead Costs 8 83,200 Manufacturing Overhead Budget For January 2018 Variable Manufcaturing overhead Costs Fixed Manufacturing Overhead Costs Total 83,200 20,800 104,000 Monthly Overhead Costs / DMLH required 104,000 / 29,900 = Budgeted Manufcaturing Overhead Rate 3 Monthly Overhead Costs / Monthly Sales 104,000 / 1300 = Budgeted Manufacturing Overhead Cost per Unit 80

Total Units of Manufcaturing Finished Goods For January 2018 Input per Cost per unit of unit of input output Direct Material Wood 30 9 b.f. Fiberglass 7 7 yds Direct Manufcaturing Labour 27 8 hrs Budgeted Manufcaturing Overhead Cost Total 270 49 216 80 615 Ending Inventories Budget For January 2018 Quantity Cost per unit Total Direct Materials Wood Fiberglass 1,520 2,020 30 7 45,600 14,140 Finished Goods Snowboard Total Ending Inventory 600 615 369,000 428,740

Answer 2

Dear Student, as per the HOMEWORKLIB POLICY, in questions consisting of several parts, first four parts should be answered.
I have completed 9 parts.
please post other parts separately.
thank you.

Revenue Budget For January 2018 Units Selling Price Total Revenues 1,300 650 845,000 Direct Material Usage Budget in Quantity and Dollars For January 2018 Material Wood Fiberglass Pyhsical Units Budget Snowboards Total 9,100 yds Production Budget For January 2018 Budgeted Unit Sales Add target Finished Goods Ending Inventory Total Required Units Deduct Beginning Finsihed Goods Inventory Units of Finished Goods to be produced 1,300 600 1,900 600 1,300 Diect Material required for Snowboards 11,700 b.f. Cost Budget Available from beginning direct material inventory (Under a FIFO cost-flow assumption) Wood 60,600 Fiberglass To be purchased this period Wood 309,760 Fiberglass Direct Material to be used this period 370,360 6,120 1,960 8,080 378,440

Total Direct Material Purchases Budget For January 2018 Material Wood Fiberglass Pyhsical Units Budget To be used in production 11,700 b.f 9,100 yds Add target ending inventory 1,520 b.f 2,020 yds Total requirement 13,220 b.f 11,120 yds Deduct Beginning Inventory 2,020 b.f 1,020 yds Purchases to be made 11,200 b.f 10,100 yds Cost Budget Purchases 336,000 70,700 406,700 Direct manufacturing Labour Cost Budget For January 2018 Hourly Output Units DMLH per Total wage Produced unit Hours Rate 1,300 8 10,400 27 Total Snowboards 280,800

Expected production for the period 10,400 Variable Overhead rate per DMLH = Variable Manufacturing Overhead Costs 8 83,200 Manufacturing Overhead Budget For January 2018 Variable Manufcaturing overhead Costs Fixed Manufacturing Overhead Costs Total 83,200 20,800 104,000 Monthly Overhead Costs / DMLH required 104,000 / 29,900 = Budgeted Manufcaturing Overhead Rate 3 Monthly Overhead Costs / Monthly Sales 104,000 / 1300 = Budgeted Manufacturing Overhead Cost per Unit 80

Total Units of Manufcaturing Finished Goods For January 2018 Input per Cost per unit of unit of input output Direct Material Wood 30 9 b.f. Fiberglass 7 7 yds Direct Manufcaturing Labour 27 8 hrs Budgeted Manufcaturing Overhead Cost Total 270 49 216 80 615 Ending Inventories Budget For January 2018 Quantity Cost per unit Total Direct Materials Wood Fiberglass 1,520 2,020 30 7 45,600 14,140 Finished Goods Snowboard Total Ending Inventory 600 615 369,000 428,740