Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Just need the ones with a red X fixed! Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of Royal Furniture

Just need the ones with a red X fixed! image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of Royal 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 February is summarized as follows: a. Estimated sales of King and Prince chairs for February by sales territory Northern Domestic King 610 units at $780 per unit Prince 750 units at $550 per unit Southern Domestici King 340 units at $780 per unit Prince 440 units at $550 per unit International: King 360 units at $aso per unit Prince 290 units at $600 per unit b. Estimated inventories at February 1 Direct materials Fabrie 420 yds Wood 50 linear it Fler 250 cu.ft Springs 660 units Finished products 90 units 25 units C Desired inventories at February 28: Direct materials: Fabric 390 sq. yds. Wood 650 linear ft. Filler 300 cu. ft. Springs 540 units Finished products: King 80 units Prince 35 units d. Direct materials used in production: In manufacture of King: Fabric 6.0 sq. yds. per unit of product Wood 38 linear ft. per unit of product Filler 4.2 cu. ft. per unit of product Springs 16 units per unit of product In manufacture of Prince: Fabric 4.0 sq, yds, per unit of product Wood 26 linear ft. per unit of product Filler 3.4 cu. ft. per unit of product Springs 12 units per unit of product e. Anticipated purchase price for direct materials Fabric $12.00 per sq. yd Wood 7.00 per linear ft. Filler 50.00 per cu. ft. Springs 450 per unit f. Direct labor requirements: King: Framing Department Cutting Department Upholstery Department Prince: 1.2 hrs. at $12 per hr. 0.5 hr. at $14 per hr. 0.8 hr. at $15 per hr. Framing Department Cutting Department Upholstery Department 1.0 hr. at $12 per hr. 0.4 hr. at $14 per hr. 0.6 hr. at $15 per hr. 2. Prepare a production budget for February. For those boxes in which you must enter subtracted or negative numbers use a minus sign Royal Furniture Company Production Budget the Month Ending February Expected units to be sold 1,310 1.480 80 Desired inventory, February 28 Total units available 1.3907 1.515 90 Estimated inventory, February 1 Total units to be produced 1,300 1,490 3. Prepare a direct materials purchases budget for February. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Royal Furniture Company Direct Materials Purchases Budget For the Month Ending February 28 Direct Materials Fabric (sg. vos Wood (linear ft.) Filler (cu.ft.) Springs (units) Required units for production 7,800 49,400 King 5,460 20,800 Prince 38,740 5,960 17.880 5,066 390 6507 300 7 540 Desired Inventory, February 28 3.790 108,266 x 39,220 14,150 Total 420 250 X 660 x Estimated inventory, February 1 Total units to be purchased 38,500 10,576 13,730 4.50 12.00 3.00 Unit price $ 617,470 V 31,728 $ 173,520 5 987,478 Total direct materials to be purchased 164,760 V $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Accounting Vol 1

Authors: Dr S. Kr. Paul, Prof. Chandrani Paul

1st Edition

164725146X, 9781647251468

More Books

Students also viewed these Accounting questions