Wear It Manufacturer creates hoodies for recent Superbowl Champions. The company sews the Hoodies from wool fabric and attaches a team logo patch. Data relating to the current team is as follows: Seahawks – blue hoodies with a Seahawk logo. The budgeted direct cost inputs for each hoodie this year are as follows:
Blue Wool fabric 1.25 metres
Seahawks logo patches 1
Direct manufacturing labour 1.5 hours
Unit data pertaining to the direct materials for June are as follows:
Actual Beginning Direct Materials Inventory (June 1st)
Blue Wool fabric 30 metres
Seahawks logo patches 40 patches
Target Ending Direct Materials Inventory (June 30th)
Blue Wool fabric 15 metres
Seahawks logo patches 10 patches
Unit cost data relating to direct-cost inputs for May and June are as follows:
| May Actual | June Budgeted | |
| Blue Wool fabric (per metre) | $ 6.00 | $ 8.00 |
| Seahawks logo patches (per patch) | $ 4.00 | $ 4.00 |
| Direct manufacturing labour cost per hour | $ 24.00 | $ 25.00 |
Manufacturing overhead (both variable and fixed) is allocated to each hoodie on the basis of budgeted direct manufacturing labour-hours per hoodie. The budgeted variable manufacturing rate for June is $14 per direct manufacturing labour-hour. The budgeted fixed manufacturing overhead for June is $4,185. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. Non-manufacturing costs for Selling, General &Administration are $1,500. Data relating to the finished goods inventory for June are as follows: Beginning Inventory 35
Beginning inventory in dollars $ 3,200
Target ending inventory in units 25
Budgeted sales for June are 190 units of the Seahawks hoodies. The budgeted selling price per unit in June is $125.
Assume the following in your answer: Work in process inventory are negligible and ignored. Direct materials inventory and finished goods inventory are costed using the FIFO method.
Questions:
(please solve the questions i and j)
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