Snows, Inc., manufactures and sells snowboards. Snows manufactures a single model, the Pipex. In late Other data include: 2017, Snows's management accountant gathered the following data to prepare budgets for January (Click the icon to view the other data.) 2018: (Click the icon to view the materials and labor requirements) The inventoriable unit cost for ending finished goods inventory on December 31, 2017, is $300.00. Assume Snows uses a FIFO inventory method for both direct materials and finished goods. Ignore work (Click the icon to view the additional information.) in process in your calculations. (Click the icon to view the direct materials inventories) Read the requirements, (Click the icon to view the additional information.) X Data Table Re i More Info Materials and Labor Requirements Direct materials Wood Snl Variable manufacturing overhead is $15 per direct manufacturing labor-hour. There are also $19,200 in fixed manufacturing overhead costs budgeted for January 2018. Snows 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 $300 per sales visit. The marketing plan calls for 39 sales visits during January 2018. Finally, there are $36,000 in fixed nonmanufacturing costs budgeted for January 2018 Fiberglass Direct manufacturing labor 12 board feet (b.f.) per snowboard 10 yards per snowboard 6 hours per snowboard Ret Print Done Data Table Bu Ad Tot - X i Data Table 2017 Unit Price 2018 Unit Price Del Wood $ 33.00 per b.f. $ 35.00 per b.f. 10.00 per yard $ $ Un Fiberglass Direct manufacturing labor 9.00 per yard 29.00 per hour $ $ 30.00 per hour Re Direct Materials Inventories Beginning Inventory 1/1/2018 Ending Inventory 1/31/2018 2,050 b.f. 1,550 b.t. 1,050 yards 2,050 yards Be Wood udget. Print Done Fiberglass i More Info Print Done Phveral linite Rudrat Snows's CEO expects to sell 3,100 snowboards during January 2018 at an estimated retail price of $850 per board. Further, the CEO expects 2018 beginning inventory of 600 snowboards and would like to end January 2018 with 700 snowboards in stock. Choose from any list or enter any number in the input fields and then continue to the next quest Requirement 1. Prepare the January 2018 revenues budget (in dollars). Revenue Budget For January 2018 Units Selling price Total revenues Snowboards Requirement 2. Prepare the January 2018 production budget (in units). Production Budget For January 2018 Budgeted units sales 3,100 700 Add target ending finished goods inventory Total required units 600 Deduct beginning finished goods inventory Units of finished goods to be produced Requirement 3. Prepare the direct material usage and purchases budgets for January 2018. Begin with the physical units portion, then prepare the cost budget portion of the direct material usage budget. Direct Material Usage Budget in Quantity and Dollars For January 2018 Material Wood Fiberglass Total Physical Units Budget Direct materials required for Snowboards b.f. yds Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Wood Fiberglass To be purchased this period Wood Fiberglass Direct materials to be used this period Now prepare the direct material purchases budget for January 2018. Direct Materials Purchases Budget For January 2018 Materials Wood Fiberglass Total Physical Units Budget To be used in production b.f. yards 2,050 yards 1,550 b.f. Add target ending inventory Total requirement b.f. yards 1,050 yards Deduct beginning inventory 2,050 b.f. Purchases to be made b.f. yards Cost Budget Purchases Requirement 4. Prepare a direct manufacturing labor budget for January 2018. (Abbreviation used: DMLH = Direct manufacturing labor hours.) Direct Manufacturing Labor Costs Budget For January 2018 Output Units DMLH Total Hourly Produced per Unit Hours Wage Rate Total Snowboards 6 Requirement 5. Prepare a manufacturing overhead budget for January 2018. Begin the manufacturing overhead cost budgets by first determining the formula, then calculate the variable manufacturing overhead costs. (Abbreviation used: Manuf. = Manufacturing.) = Variable manufacturing overhead costs II Now prepare the manufacturing overhead cost budgets. Manufacturing Overhead Budget For January 2018 Variable manufacturing overhead costs Fixed manufacturing overhead costs Total Requirement 6. What is the budgeted manufacturing overhead rate for January 2018? Begin by determining the formula, then enter the appropriate amounts to calculate the budgeted manufacturing overhead rate for January 2018. (Abbreviation used: Manuf. = Manufacturing. Round the overhead rate to the nearest cent.) Budgeted manufacturing overhead rate Requirement 7. What is the budgeted manufacturing overhead cost per output unit in January 2018? Begin by determining the formula, then enter the appropriate amounts to calculate the budgeted manufacturing overhead cost per output unit in January 2018. (Abbreviation used: Manuf. = Manufacturing. Round the overhead cost per output unit to the nearest whole dollar.) Budgeted manufacturing overhead cost per output unit = Requirement 8. Calculate the cost of a snowboard manufactured in January 2018. Unit Costs of Manufacturing Finished Goods For January 2018 Cost per Input per unit unit of input of output Total Direct materials Wood 12 b.f. 10 yds. Fiberglass Direct manufacturing labor 6 hrs. IIIII Budgeted manufacturing overhead cost Total Requirement 9. Prepare an ending inventory budget for both direct materials and finished goods for January 2018. Ending Inventories Budget For January 2018 Quantity Cost per unit Total Direct materials Wood 1,550 Fiberglass 2,050 Finished goods Snowboard 700 Total ending inventory Requirement 10. Prepare a cost of goods sold budget for January 2018. Cost of Goods Sold Budget For January 2018 Beginning finished goods inventory, January 1 Direct materials used Direct manufacturing labor Manufacturing overhead Cost of goods manufactured Cost of goods available for sale Cost of goods available for sale Deduct ending finished goods inventory, January 31 Cost of goods sold Requirement 11. Prepare the budgeted income statement for Snows, Inc., for January 2018. Budgeted Income Statement For January 2018 Revenues Cost of goods sold Gross margin Operating (nonmanufacturing) costs Operating income Requirement 12. What questions might the CEO ask the management team when reviewing the budget? Should the CEO set stretch targets? Explain briefly. First, select the questions that the CEO might ask the marketing manager. (Select all that apply.) Now, select the questions that the CEO might ask the production manager. (Select all that apply.) Now, select the questions that the CEO might ask the production manager. (Select all that apply.) Should the CEO set stretch targets? Explain briefly. The CEO because: (Select all that apply.) Requirement 13. How does preparing the budget help Snows' management team better manage the company? Preparing a budget helps Snows, Inc.: (Select all that apply.)