a. Estimated sales of William and Kate chairs for March by sales territory: Eastern Domestic: William 8,750 units at $800 per unit Kate 6,000 units at $650 per unit Western Domestic: N William 6,000 units at $700 per unit Kate 6,250 units at $550 per unit International: William 4,000 units at $600 per unit Kate 1,000 units at $350 per unit b. Estimated inventories at March 1: Direct materials: Finished products: Fabric 5,500 sq. yds. William 1,500 units Wood 13,700 lineal ft. Date 300 units Filler 3,800 cu. ft. Springs 3,500 units c. Desired inventories at March 31: Direct materials: Finished products: Fabric 9,000 sq. yds. William 2,000 units Wood 20,000 lineal ft. Kate 900 units Filler 5,000 cu. ft. Springs 7,500 units d. Direct materials used in production: In manufacture of William: Fabric 4.0 sq. yds. per unit of product Wood 16 lineal ft. per unit of product Filler 3.8 cu. ft. per unit of product Springs 14 units per unit of product In manufacture of Kate: Fabric 2.5 sq. yds. per unit of product Wood 12 lineal ft. per unit of product Filler 3.2 cu. ft. per unit of product Springs 10 units per unit of product e. Anticipated purchase price for direct materials: Fabric $9.00 per sq. yd. Filler $1.50 per cu. ft. Wood 5.00 per lineal ft. Springs 2.00 per unit f. Direct labor requirements: William: Framing Department 2.5 hrs. at $15 per hr. Cutting Department 1.0 hr. at $12 per hr. 3.0 hrs. at $16 per hr. Upholstery Department Kate: Framing Department 1.5 hrs. at $15 per hr. Cutting Department 0.5 hr. at $12 per hr. Upholstery Department 2.0 hrs. at $16 per hr. 3. Prepare a direct materials purchases budget for March. Royal British Furniture Company Direct Materials Purchases Budget For the Month Ending March 31 Direct Materials Fabric (sq yds.) Wood (lineal ft.) Filler (cu. ft.) Required units for production: William 66.000 X 264.000 x 62.700 X Kate 31.500 X I 151.200 X 40.320 X Plus desired inventory, March 31 20.000 Springs (units) Total 231.000 x 126,000 X 9.000 5.000 7.500 435.200 X Total Less estimated Inventory, March 1 108020 X 364.500 X 106.500 X 5.500 -13.700 3.800 3.500 Total units to be purchased 101.000 x 421 500 x 104,220 X 361.000 x Unit price $ 5 5 s 1.5 2 X 909.000 Total direct materials to be purchased 2.107.500 X 156,330 X 722.000 X $ 3.894 B30 X 4. Prepare a direct labor cost budget for March. Royal British Furniture Company Direct Labor Cost Budget For the Month Ending March 31 Framing Department Cutting Department Upholstery Department Total Hours required for production: William 41.250 X 16.500X 49.500 X Kate 18,900 6.300 25.200 X Total 60.150 X 22.800 x 74.700 x Hourly rate 15 12 16 Total direct labor cost 902.250 X 273,600 X 1.195.200 x 2.371050 X Feedback
