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What is accounting equation explain with example

04/10/2021 Client: muhammad11 Deadline: 2 Day

Manufacturing overhead (both variable and fixed) is allocated to each blanket on the basis of budgeted direct manufacturing labor-hours per blanket. The budgeted variable manufacturing overhead rate for March 2017 is $16 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2017 is $14,640. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. Data relating to finished goods inventory for March 2017 are as follows: Raiders Blanket Beginning inventory in units Beginning inventory in dollars (cost) Target ending inventory in units Knights Blanket 12 $1,440 22 $2,550 27 Budgeted sales for March 2017 are 130 units of the Knights blankets and 190 units of the Raiders blankets. The budgeted selling prices per unit in March 2014 are $229 for the Knights blankets and $296 for the Raiders blankets. Assume the following in your answer: • Work-in-process inventories are negligible and ignored. • Direct materials inventory and finished goods inventory are costed using the FIFO method. • Unit costs of direct materials purchased and finished goods are constant in March 2017 1. Prepare the following budgets for March 2017: a. Revenues budget b. Production budget in units c. Direct material usage budget and direct material purchases budget d. Direct manufacturing labor budget e. Manufacturing overhead budget f. Ending inventories budget (direct materials and finished goods) 9. Cost of goods sold budget 2. Suppose Lame Specialties decides to incorporate continuous improvement into its budgeting process Describe two areas where it could incorporate continuous improvement into the budget schedules in requirement 1.

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