Question

Specialties​ manufactures, among other​ things, woolen blankets for the athletic teams of the two local high schools.

Requirement 1. Prepare the following budgets.

The budgeted​ direct-cost inputs for each product in

20172017

are as​ follows:

	Broncos Blanket		Rams Blanket
Red wool fabric	12	yards	0	yards
Black wool fabric	0		13
Broncos logo patches	1		0
Rams logo patches	0		1
Direct manufacturing labor	11	hours	12	hours

Unit data pertaining to the direct materials for March

20172017

are as​ follows:

Actual Beginning Direct Materials Inventory (3/1/2017)
	Broncos Blanket		Rams Blanket
Red wool fabric	75	yards	0	yards
Black wool fabric	0		55
Broncos logo patches	85		0
Rams logo patches	0		100

Target Ending Direct Materials Inventory (3/31/2017)
	Broncos Blanket		Rams Blanket

a. Prepare the revenues budget.

Revenues Budget
For the Month of March
	Units	Selling Price	Total revenues
Broncos Blankets	210	$1,124
Rams Blankets	230	1,215
Total

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:

times•

BroncosBroncos​,

with red blankets and the

BroncosBroncos

logo

times•

RamsRams​,

with black blankets and the

RamsRams

logo

​Also, the black blankets are slightly larger than the red blankets.

Answer 1

Solution

Requirement 1:

a.  

Revenue budget:

	Units	selling price	Total revenue
Broncos blankets	210	$1,124	$236,040
Ram's blankets	230	$1,215	$279,450
Total			$515,490

Other budgets required are not given in image.