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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: . Estimated sales of King and Prince chairs for February by sales territory: Northern Domestic: e. Anticipated purchase price for direct materials: King 610 units at $780 per unit Fabric $12.00 per sq. yd. Prince 750 units at $550 per unit Wood 7.00 per linear ft. Southern Domestic: Filler $3.00 per cu. ft. King 340 units at $780 per unit Springs 4.50 per unit Prince 440 units at $550 per unit f. Direct labor requirements: International: King: King 360 units at $850 per unit Prince 290 units at $600 per unit Framing Department 1.2 hrs. at $12 per hr. Cutting Department 0.5 hr. at $14 per hr. b. Estimated inventories at February 1: Upholstery Department 0.8 hr. at $15 per hr. Direct materials: Prince: Fabric 420 sq. yds. Framing Department 1.0 hr. at $12 per hr. Wood 580 linear ft. Cutting Department 0.4 hr. at $14 per hr. Filler 250 cu. ft. Upholstery Department 0.6 hr. at $15 per hr. Springs 660 units Finished products: King 90 units Prince 25 units 2. Prepare a production budget for February. For those boxes in which you must c. Desired inventories at February 28: use a minus sign. Direct materials: Fabric 390 sq. yds Royal Furniture Company Wood 650 linear ft. Production Budget Filler 300 cu. ft. For the Month Ending February 28 Springs 540 units Units Finished products: King Prince King 80 units Prince 35 units Expected units to be sold d. Direct materials used in production: Desired inventory, February 28 Total units available In manufacture of King: Estimated inventory, February 1 Fabric 6.0 sq. yds. per unit of product 1 38 linear ft. per unit of product Total units to be produced 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