Bob's Bowling Ltd. produces bowling balls in a variety of designer colours. 2021 Master budget...
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Bob's Bowling Ltd. produces bowling balls in a variety of designer colours. 2021 Master budget data is as follows: Quarter 1 (Jan - Mar) 2 (Apr - Jun) 3 (Jul - Sep) 11,000 4 (Oct - Dec) Total Sales (units) 10,000 15,000 15,000 51,000 Unit Price $150 $150 $150 $150 Production (units) 10,200 14,600 11,400 15,150 51,350 Raw material required per unit (Kilograms) 2 2 2 2 Raw material price per kilogram $10 $10 $10 $10 Direct labour hours per unit 1.5 1.5 1.5 1.5 Direct labour rate $15 $15 $15 $15 Manufacturing overhead allocations per unit $25 $25 $25 $25 Selling, general and administrative expenses $276,250 $291,250 $279,250 $291,250 $1,138,000 Required: For the first quarter of 2021 a) Calculate Bob's Bowling's cost of goods sold. Show your work. (3 marks) b) Prepare Bob's Bowling's budgeted multi-step income statement; ignore interest and taxes. (4 marks)
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