Sales, production, direct materials purchases, and direct labor cost budgets OBJ. 4 The budget director of Royal Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for February 2016 is summarized as follows:

Instructions 1. Prepare a sales budget for February.
2. Prepare a production budget for February.
3. Prepare a direct materials purchases budget for February.
4. Prepare a direct labor cost budget for February.