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ales, Production, Direct Materials Purchases, and Direct Labor Cost The budget director of Royal British Furniture Company requests estimates of sales, production, and other operating

ales, Production, Direct Materials Purchases, and Direct Labor Cost

The budget director of Royal British 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 March is summarized as follows:

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:
William 6,000 units at $700 per unit
Kate 6,750 units at $550 per unit
International:
William 3,250 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. Kate 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.
Upholstery Department 3.0 hrs. at $16 per hr.
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.
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1. Prepare a sales budget for March. 2. Prepare a production budget for March. 3. Prepare a direct materials purchases budget for March. Royal British Furniture Company Direct Materials Purchases Budget For the Month Ending March 31 4. Prepare a direct labor cost budget for March

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