Chapter 6, Problem 6.35P

1.

To determine

To prepare: The revenue budget.

2.

To determine

To prepare: The production budget in units.

3.

To determine

To prepare: The direct materials usage budget and purchases budget for January 2018.

4.

To determine

To prepare: The direct manufacturing labor costs budget for January 2018.

5.

To determine

To prepare: The manufacturing overhead costs to budget for each of the three activities.

6.

To determine

The budgeted unit cost of ending finished goods inventory and ending inventories budget.

7.

To determine

To prepare: The cost of goods sold budget.

8.

To determine

To prepare: The non-manufacturing costs budget.

9.

To determine

To prepare: The budgeted income statement.

10.

To determine

To explain: The way in which the preparation of budget helps a management team to better manage the company.