Question

I just need part e, f and g

are ure Tollowing Duagers. a. Prepare the revenues budget. Revenues Budget For the Month of March Units Selling Price Total revenues 140 $ 42700 195 378 — 73710 116,410 Broncos Blankets 305 Rams Blankets Total b. Prepare the production budget in units, Rams Production Budget For the Month of March Broncos Budgeted units sales Add target ending finished goods inventory Total required units 164 Deduct beginning finished goods inventory 140 24 Units of finished goods to be produced 205

Answer 1

Part-e

Total manufacturing overhead cost = variable cost per unit x total number of units produced

= ( variable cost per unit of broncos blanket x total number of units used ) +(variable cost per unit of rams blanket x total number of units used )

   = (175 x 150 )+(227 + 205)= 72785

Notes-

1. Variable cost of broncos blanket =(No. of used x cost per unit for one blanket)+(No. of Broncos logo used x No. of unit used for one blanket) +(Direct manufacturing labour rate x time taken to produce one unit) = (5 x 11) +(1 x 8) +( 28 x 4) = 175
2. Variable cost of Rams blanket =(No. of used x cost per unit for one blanket)+(No. of rams logo used x No. of unit used for one blanket) +(Direct manufacturing labour rate x time taken to produce one unit) = (6 x 13) +(1 x 9) +( 28 x 5) = 227

Part -f

	Unit cost for the finished good ending on March 31
	Product
	Broncos                                   Rams
	Cost p.u.	input per unit of output	Total	Cost p.u.	input per unit of output	Total
wool	11	5 yards	55	13	6 yards	78
Logs	8	1	8	9	1	9
Direct manufacturing labour	28	4 hrs	112	28	5 hrs	140
Fixed manufacturing overheads	9	4 hrs	36	9	5 hrs	45
Variable manufacturing overheads	17	4 hrs	68	17	5 hrs	85
Total			279			357

Notes-

To find the Fixed manufacturing overheads for a unit we will divide the cost of Fixed manufacturing overheads by total operations hours

, so as the Fixed manufacturing overheads is given i.e. 14625 and operation hours = ( broncos blanket unit produced x time taken for one unit )+ (Rams blanket unit produced x time taken for one unit ) i.e. (4 x 150) +(5 x 205) = 1625 hours

so per unit cost = 14625/1625 = 9

Ending inventory budget 31 March 17
	Quantity	Cost P.u.	Total
Direct material
Red wool	30	11	330
Black wool	20	13	260
Broncos logo	30	8	240
Rams logo	30	9	270	1100
Finished goods
Broncos Blanket	24	279	6696
Rams blanket	29	357	10353	17049
Total ending inventory				18149

Part - g

Cost of good sold budget 31 march 2017
Beginning finished goods inventory	4905
Direct material used	27080
Direct manufacturing labour	45500
Manufacturing overhead	14625
Cost of goods manufactured	92110
Cost of goods available for sale	0
Deduct ending finished goods inventory	18149
Cost of goods sold	73961

* cost of goods to sale will be 0 as no admin and similar  cost is given.