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Apex Company manufactures and sells executive writing desks. The following information gathered by the companys accountant is for the 2017 budget:

The company expects to sell 1,000 executive writing desks during 2017 at an estimated price of $450 per desk.

Materials and labor per desk:

Direct materials (wood) 5 board feet (b.f) per desk

Direct manufacturing labor 6 hours per desk

Costs: 2016 Unit price 2017 Unit Price

Wood $28 per b.f. $30.00 per b.f.

Direct manufacturing labor $24.00 per hour $25.00 per hour

Beginning Ending

Inventory Inventory

Inventories: 1/1/2017 12/31/2017

Finished goods (executive writing desks) 100 units 200 units

Direct materials (wood) 2,000 b.f. 1,500 b.f.

Other costs:

Budgeted variable manufacturing overhead:

Indirect manufacturing labor $28,000

Indirect materials 13,200

Utilities 5,000

Budgeted fixed manufacturing overhead:

Depreciation factory equipment 5,060

Factory rent 12,000

Factory managers salary 30,000

Factory security 13,000

Apex uses direct manufacturing labor-hours as the cost allocation base (denominator level) to allocate variable and fixed manufacturing costs to production.

Budgeted variable marketing expense is 30 sales visits at $250 per visit.

Budgeted fixed non-manufacturing costs are:

Selling expense, $17,000

Administrative expense, 13,000

The company plans to declare a common stock cash dividend of $5,000 in December 2017.

The inventoriable unit cost for ending finished goods inventory on December 31, 2016, is $375. The company uses FIFO inventory method for both direct materials and finished goods.

Budgeted balances at December 31, 2017, in the selected accounts are:

Cash $10,000

Accounts receivable 36,000

Factory equipment (net) . 750,000

Office furniture and fixtures (net)... 300,000

Accounts payable 10,000

Note payable (due 02/01/2018) 7,000

Accumulated depreciation factory equipment 150,000

Accumulated depreciation office furniture and fixtures. 50,000

Allowance for doubtful accounts 1,740

Note payable (due 09/30/2020) .. 78,000

Bonds payable (maturing 12/31/2030) .. 100,000

Common stock ($1 par value) 100,000

Additional paid in capital 600,000

Retained earnings (balance at 1/1/17) 101,520

The companys income tax rate is 20%.

Required:

Prepare the 2017 revenue budget

Prepare the 2017 production budget

Prepare the direct materials usage and purchases budget

Prepare a direct manufacturing labor budget

Prepare a manufacturing overhead budget

Calculate the budgeted manufacturing overhead rate

Calculate the budgeted manufacturing overhead cost per output unit

Calculate the cost of a writing desk manufactured in 2017

Prepare an ending inventory budget for both direct materials and finished goods

Prepare a cost of goods manufactured budget

Prepare a cost of goods sold budget

Prepare a budgeted multiple-income statement for the year ended December 31, 2017

Prepare a budgeted classified balance sheet as of December 31, 2017

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