Please follow all of the instructions on the task sheet provided and use the attachments as a guide for structuring and layout. Just ignore the due date on the task sheet and follow the due date provided by myself.
Microsoft Word - assignmnet.docx INDIVIDUAL ASSIGNMENT Due Date: before midnight 18 October This assignment needs to be uploaded as a Word doc in the assignment section of the MyUni page for this course. It will be marked on‐line and any feedback gien will be included on the rubric. The rubric will be attached to the assignment web site later. Any assignment submitted late will incur a 10% penalty for each day it is late. The weeken counts as 1 day. Any assignment submitted more than3 days late will not be marked. Look at the following pages for guidance on presentation etc: Pages 157‐158 Appendix Chapter 9, (pages 447 – 450) for guidance o preparing this assignment Sloane, Inc., manufactures and sells snowboards. Sloane manufactures a single model, the Pipex. In the summer of 2017, Sloane’s management accountant gathered the following data to prepare budgets for 2018: Materials and Labour Requirements Direct materials Wood 9 board feet (b.f.) per snowboard Fiberglass 10 yards per snowboard Direct manufacturing labour 5 hours per snowboard Sloane’s CEO expects to sell 2,900 snowboards during 2018 at an estimated retail price of $650 per board. Further, the CEO expects 2018 beginning inventory of 500 snowboards and would like to end 2018 with 200 snowboards in stock. Direct Materials Inventories Beginning Inventory 1/1/2018 Ending Inventory 12/31/2018 Wood 2,040 b.f. 1,540 b.f Fiberglass 1,040 yards 2,040 yards . Variable manufacturing overhead is $7 per direct manufacturing labour‐hour. There are also $80,600 in fixed manufacturing overhead costs budgeted for 2018. Sloane combines both variable and fixed manufacturing overhead into a single rate based on direct manufacturing labour‐hours. Variable marketing costs are allocated at the rate of $250 per sales visit. The marketing plan calls for 38 sales visits during 2018. Finally, there are $35,000 in fixed nonmanufacturing costs budgeted for 2018. Other data include: Direct Materials Inventories 2017 2018 Unit Price Unit Price Wood $32.00 per b.f $34.00 per b.f.. Fiberglass 8.00 per yard $ 9.00 per yard Direct manufacturing labour $28.00 per hour $29.00 per hour The inventoriable unit cost for ending finished goods inventory on December 31, 2017, is $374.80. Assume Sloane uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. Budgeted balances at December 31, 2017, in the selected accounts are as follows: Cash $ 14,000 Property, Plant, and equipment (net) 854,000 Current liabilities 21,000 Long‐term liabilities 182,000 Stockholders’ equity 857,120 Required 1. Prepare the 2018 sales budget (in dollars). 2. Prepare the 2018 production budget (in units). 3. Prepare the direct material usage and purchases budgets for 2018. 4. Prepare a direct manufacturing labour budget for 2018. 5. Prepare a manufacturing overhead budget for 2018. 6. What is the budgeted manufacturing overhead rate for 2018? 7. What is the budgeted manufacturing overhead cost per output unit in 2018? (round to the nearest $) 8. Calculate the cost of a snowboard manufactured in 2018. 9. Calculate the ending inventory budget for finished goods for 2018. 10. Prepare a cost of goods sold budget for 2018. 11. Prepare the budgeted income statement for Sloane, Inc., for the year ending December 31, 2018.