eBook 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 July is summarized as follows: a. Estimated sales for July by sales territory: Maine: Backyard Chef Master Chef 310 units at $700 per unit 150 units at $1,200 per unit Vermont: Backyard Cher Master Chef New Hampshire: 240 units at $750 per unit 110 units at $1,300 per unit Backyard Chef Master Chef 360 units at $750 per unit 180 units at $1,400 per unit b. Estimated Inventories at July 1: Direct materials: Grates 290 units 1,500 lbs. Stainless steel Burner subassemblies Shelves 170 units 340 units Finished products: Backyard Cher Master Chef 30 units 32 units CBOOK 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 Cher Master Chef 40 units 22 units d. Direct materials used in production: In manufacture of Backyard Chef: Grates Stainless steel 3 units per unit of product 24 lbs. per unit of product 2 units per unit of product 4 units per unit of product Burner subassemblies Shelves In manufacture of Master Chef Grates 6 units per unit of product SOON Grates Stainless steel 6 units per unit of product 42 lbs. per unit of product 4 units per unit of product Burner subassemblies Shelves 5 units per unit of product e. Anticipated purchase price for direct materials: Grates $15 per unit Stainless steel $6 per lb. Burner subassemblies $110 per unit Shelves $10 per unit 1. 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: 0.60 hr. at $17 Stamping Department per hr Stamping Department 0.60 hr. at $17 per hr Forming Department 0.80 hr. at $15 per hr. Assembly Department 1.50 hrs. at $14 per hr Rennrar. Book Required: 1. Prepare a sales budget for July Gourmet Grill Company Sales Budget For the Month Ending July 31 Product and Area Unit Sales Volume Unit Selling Price Total Sales Backyard Chef: Maine Vermont New Hampshire Total Master Chef: Maine Vermont New Hampshire Total Total revenue from sales 2. Prepare a production budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign Gourmet Grill Company Production Budget For the Month Ending July 31 Units Backyard Chef Master Chef 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 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 Chel Master Chef Total Hourly rate Total direct labor cost
