a. Estimated sales for July by sales territory: Maine: Backyard Chef 310 units at $700 per unit Master Chef 150 units at $1,200 per unit Vermont: Backyard Chef 240 units at $750 per unit Master Chef 110 units at $1,300 per unit New Hampshire: Backyard Chef 360 units at $750 per unit Master Chef 180 units at $1,400 per unit b. Estimated inventories at July 1: Direct materials: Grates 290 units Stainless steel 1,500 lbs. 170 units 340 units Burner subassemblies Shelves Finished products: Backyard Chef 30 units Master Chef 32 units c. Desired inventories at July 31: Direct materials: Grates 340 units Stainless steel 1,800 lbs. 155 units 315 units Burner subassemblies Shelves Finished products: Backyard Chef Master Chef d. Direct materials used in production: In manufacture of Backyard Chef: 40 units 22 units Grates Stainless steel 3 units per unit of product 24 lbs. per unit of product 2 units per unit of product Burner subassemblies Shelves 4 units per unit of product In manufacture of Master Chef: Grates 6 units per unit of product 42 lbs. per unit of Burner subassemblies 4 units per unit of product Shelves 5 units per unit of product e. Anticipated purchase price for direct materials: Grates Stainless steel $15 per unit $6 per lb. Burner subassemblies $110 per unit Shelves $10 per unit f. Direct labor requirements: Backyard Chef: Stamping Department 0.50 hr. at $17 per hr. Forming Department 0.60 hr. at $15 per hr. Assembly Department 1.00 hr. at $14 per hr. Master Chef: Stamping Department 0.60 hr. at $17 per hr. 0.80 hr. at $15 Forming Department per hr. 1.50 hrs. at $14 Assembly Department per hr. Gourmet Grill Company Sales Budget For the Month Ending July 31 Unit Sales Unit Selling Product and Area Volume Price Total Sales Backyard Chef: Maine 310 217,000 700 Vermont 240 750 180,000 New Hampshire 360 750 270,000 Total 910 667,00 Master Chef: Maine 150 180,000 1,200 Vermont 110 1,300 143,000 New Hampshire 180 1,400 252,000 Total 440 575,000 Total revenue from sales 1,242,000 3. Prepare a direct materials purchases budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign Gourmet Grill Company Direct Materials Purchases Budget For the Month Ending July 31 Grates (units) Stainless Steel (lbs.) Burner Sub- assemblies (units) Shelves (units) Total Required units for production: Backyard Chef 2 Master Chef Desired Inventory, July 31 Total Estimated Inventory, July 1 Total units to be purchased Unit price Total direct materials to be purchased 4. Prepare a direct labor cost budget for July Gourmet Grill Company Direct Labor Cost Budget For the Month Ending July 31 Stamping Forming Department Department Assembly Department Total Hours required for production: Backyard Chef Master Chef Total 11 Hourly rate 11 Total direct labor cost
