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   Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets

   The budget director of Gourmet Grill 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 for March by sales territory:

   Maine:
   Backyard Chef	350 units at $800 per unit
   Master Chef	200 units at $1,400 per unit
   Vermont:
   Backyard Chef	400 units at $825 per unit
   Master Chef	240 units at $1,500 per unit
   New Hampshire:
   Backyard Chef	320 units at $850 per unit
   Master Chef	200 units at $1,600 per unit

   b. Estimated inventories at March 1:

   Direct materials:
   Grates	320 units
   Stainless steel	1,700 lb.
   Burner subassemblies	190 units
   Shelves	350 units
   Finished products:
   Backyard Chef	30 units
   Master Chef	36 units

   c. Desired inventories at March 31:

   Direct materials:
   Grates	300 units
   Stainless steel	1,500 lb.
   Burner subassemblies	210 units
   Shelves	400 units
   Finished products:
   Backyard Chef	40 units
   Master Chef	26 units

   d. Direct materials used in production:

   In manufacture of Backyard Chef:
   Grates	3 units per unit of product
   Stainless steel	24 lb. per unit of product
   Burner subassemblies	2 units per unit of product
   Shelves	4 units per unit of product
   In manufacture of Master Chef:
   Grates	6 units per unit of product
   Stainless steel	42 lb. per unit of product
   Burner subassemblies	4 units per unit of product
   Shelves	5 units per unit of product

   e. Anticipated purchase price for direct materials:

   Grates	$16 per unit
   Stainless steel	$8 per lb.
   Burner subassemblies	$120 per unit
   Shelves	$12 per unit

   f. Direct labor requirements:

   Backyard Chef:
   Stamping Department	0.50 hr. at $18 per hr.
   Forming Department	0.60 hr. at $16 per hr.
   Assembly Department	1.00 hr. at $15 per hr.
   Master Chef:
   Stamping Department	0.60 hr. at $18 per hr.
   Forming Department	0.80 hr. at $16 per hr.
   Assembly Department	1.50 hrs. at $15 per hr.

   Required:

   1. Prepare a sales budget for March.

   Gourmet Grill Company Sales Budget For the Month Ending March 31
   Product and Area		Unit Sales Volume	Unit Selling Price	Total Sales
   Backyard Chef:
   	Maine	fill in the blank 1	$fill in the blank 2	$fill in the blank 3
   	Vermont	fill in the blank 4	fill in the blank 5	fill in the blank 6
   	New Hampshire	fill in the blank 7	fill in the blank 8	fill in the blank 9
   	Total	fill in the blank 10		$fill in the blank 11
   Master Chef:
   	Maine	fill in the blank 12	$fill in the blank 13	$fill in the blank 14
   	Vermont	fill in the blank 15	fill in the blank 16	fill in the blank 17
   	New Hampshire	fill in the blank 18	fill in the blank 19	fill in the blank 20
   	Total	fill in the blank 21		$fill in the blank 22
   Total revenue from sales				$fill in the blank 23

   2. Prepare a production budget for March.

   Gourmet Grill Company Production Budget For the Month Ending March 31
   	Units
   	Backyard Chef	Master Chef
   Expected units to be sold	fill in the blank 24	fill in the blank 25
   Plus desired inventory, March 31	fill in the blank 26	fill in the blank 27
   Total units required	fill in the blank 28	fill in the blank 29
   Less estimated inventory, March 1	fill in the blank 30	fill in the blank 31
   Total units to be produced	fill in the blank 32	fill in the blank 33

   3. Prepare a direct materials purchases budget for March.

   Gourmet Grill Company Direct Materials Purchases Budget For the Month Ending March 31
   	Grates (units)	Stainless Steel (lb.)	Burner Sub- assemblies (units)	Shelves (units)	Total
   Required units for production:
   Backyard Chef	fill in the blank 34	fill in the blank 35	fill in the blank 36	fill in the blank 37
   Master Chef	fill in the blank 38	fill in the blank 39	fill in the blank 40	fill in the blank 41
   Plus desired inventory, March 31	fill in the blank 42	fill in the blank 43	fill in the blank 44	fill in the blank 45
   Total units required	fill in the blank 46	fill in the blank 47	fill in the blank 48	fill in the blank 49
   Less estimated inventory, March 1	fill in the blank 50	fill in the blank 51	fill in the blank 52	fill in the blank 53
   Total units to be purchased	fill in the blank 54	fill in the blank 55	fill in the blank 56	fill in the blank 57
   Unit price	$fill in the blank 58	$fill in the blank 59	$fill in the blank 60	$fill in the blank 61
   Total direct materials to be purchased	$fill in the blank 62	$fill in the blank 63	$fill in the blank 64	$fill in the blank 65	$fill in the blank 66

   4. Prepare a direct labor cost budget for March.

   Gourmet Grill Company Direct Labor Cost Budget For the Month Ending March 31
   			Stamping Department		Forming Department		Assembly Department	Total
   Hours required for production:
   	Backyard Chef		fill in the blank 67		fill in the blank 68		fill in the blank 69
   	Master Chef		fill in the blank 70		fill in the blank 71		fill in the blank 72
   	Total hours required		fill in the blank 73		fill in the blank 74		fill in the blank 75
   Hourly rate			$fill in the blank 76		$fill in the blank 77		$fill in the blank 78
   Total direct labor cost			$fill in the blank 79		$fill in the blank 80		$fill in the blank 81	$fill in the blank 82