3. Total direct materials purchases, $987,478 DIDELTEMPLATE PR 22-2B Sales, production direct materiale purchases, and direct labor cost budgets Obj. 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 is summarized as follows: a. Estimated sales of King and Prince chairs for February by sales territory: Northern Domestic King... 610 units at $780 per unit Prince... 750 units at $550 per unit Southern Domestic: King..... 340 units at $780 per unit Prince 440 units at $550 per unit International: King.. 360 units at $850 per unit Prince ............. 290 units at $600 per unit b. Estimated inventories at February 1: Direct materials: Finished products: Fabric 420 sq yds. King 90 units Wood ... 580 linear ft. Prince.. 25 units Filler ...... 250 cu.ft. Springs........... 660 units c. Desired inventories at February 28: Direct materials: Finished products: Fabric 390 sq.yds. King. 80 units Wood .... 650 linear ft. Prince....... 35 units Filler 300 cu.ft. Springs............ 540 units d. Direct materials used in production: In manufacture of King: Fabric ... 6.0 sq yds. per unit of product Wood ............. 38 linear ft. per unit of product Filler ............. .. .. . 4.2 cu.ft. per unit of product Springs........... 16 units per unit of product In manufacture of Prince: Fabric... 4.0 sq yds. per unit of product Wood ............. 26 linear ft. per unit of product Filler ...... .. . 3.4 cu.ft. per unit of product Springs. 12 units per unit of product e. Anticipated purchase price for direct materials: Fabric .................... $12.00 per sq.yd. Filler $3.00 per cu.ft. Wood ... ........... 7.00 per linear ft. Springs ........... 4.50 per unit Filler ................ (Continued) ter 22 Budgeting f. Direct labor requirements: King: Framing Department......... Cutting Department......... Upholstery Department...... Prince: Framing Department.... Cutting Department. ......... Upholstery Department.... 1.2 hrs. at $12 per hr. 0.5 hr. at $14 per hr 0.8 hr. at $15 per hr. 1.0 hr. at $12 per hr 0.4 hr. at $14 per hr. 0.6 hr. at $15 per hr. 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