Coronado Furniture builds high-end hand-made dining tables. Attacus Simmons, the company's owner, has developed the following sales forecast for 2022. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Forecasted sales (tables) 2,600 3,000 2.800 1,900 Because of the time needed to create each table, Coronado maintains an ending Finished Goods Inventory of 20% of the following quarter's budgeted sales. Coronado has been following this inventory policy for several years. The company ended 2021 with 450 tables on hand. The standard cost card for a table is as follows: Standard Quantity Standard Price Total Standard Cost American cherry wood 20 board feet $4/board foot $80 American cherry turning square (legs) 4 squares $8/square 32 Direct labor 8 DLH $15/DLH 120 Variable overhead 8 DLH $45/DLH 360 Fixed overhead 8 DLH $12/DLH 96 $688 Prepare Coronado's direct labor budget for 2022. Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted DL cost Budgeted production Standard wage rate Standard DLH per unit Total DLH required $ $ $ $ $ $ (a) Your answer is correct. Prepare Coronado's production budget for 2022. Assume that the desired ending inventory for 2022 is 500 tables. Production Budget 1st Quarter 2nd Quarter 3rd Quarter Budgeted unit sales 2600 3000 2800 Budgeted ending inventory 600 560 380 Total units required 3200 3560 3180 Beginning inventory -450 i -600 i -560 i Budgeted Production 2750 2960 2620 udget for 2022. Assume that the desired ending inventory for 2022 is 500 tables. n Budget 3rd Quarter 4th Quarter Annual 2800 1900 10300 380 500 500 3180 2400 10800 -560 -380 -450 i 2620 2020 10350 Coronado maintains inventory of American cherry wood equal to 10% of the following quarter's production needs. On December 31, 2021, Coronado's physical inventory count showed 4,800 board feet of American cherry. Due to an anticipated price increase in 2023, managers want to have 5,000 board feet of American cherry wood in inventory on December 31, 2022. Prepare Coronado's 2022 direct materials purchases budget for American cherry wood. Direct Materials Purchases Budget Direct Materials Purchases Budget 1st Quarter 2nd Quarter 3rd Quarter Budgeted production 2750 2960 2620 Standard board feet 20 20 20 Production needs 55000 59200 52400 Budgeted ending inventory 5920 5240 4040 Total DM required 60920 64440 56440 Beginning inventory 4800 i 5920 i 5240 i Budgeted purchases 56120 58520 51200 Standard price per board foot $ 4 $ 4 $ 4 Budgeted purchases cost $ 224480 $ 234080 204800 Direct Materials Purchases Budget 2nd Quarter 3rd Quarter 4th Quarter Annual 2960 2620 2020 10350 20 20 20 20 59200 52400 40400 207000 5240 4040 5000 5000 64440 56440 45400 212000 5920 5240 i 4040 i 4800 i 58520 51200 41360 207200 4 $ 4 $ 4 $ 4 234080 $ 204800 $ 165440 $ 828800
