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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: a. Estimated sales of King and Prince chairs for February by sales territory: e. Anticipated purchase price for direct materials: Northern Domestic: King 610 units at $780 per unit Fabric $12.00 per sq. yd. Wood Prince 750 units at $550 per unit 7.00 per linear ft. Filler Southern Domestic: $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 Framing Department 1.2 hrs. at $12 per hr. Prince 290 units at $600 per unit 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 3. Prepare a direct materials purchases budget for February. For those boxes in which you n c. Desired inventories at February 28: negative numbers use a minus sign. Direct materials: Fabric 390 sq. yds. Royal Furniture Company Wood 650 linear ft. Direct Materials Purchases Budget Filler 300 cu. ft. For the Month Ending February 28 Springs 540 units Direct Materials Finished products: Fabric Wood Filler King 80 units Springs To Prince 35 units (sq. yds.) (linear ft.) (cu. ft.) (units) d. Direct materials used in production: Required units for production: king In manufacture of King: Prince Fabric 6.0 sq. yds. per unit of product Wood 38 linear ft. per unit of product Desired inventory, February 28 Filler 4.2 cu. ft. per unit of product Total Springs 16 units per unit of product Estimated inventory, February 1 In manufacture of Prince: Total units to be purchased Fabric 4.0 sq. yds. per unit of product Unit price $ $ $ $ Wood 26 linear ft. per unit of product Total direct materials to be purchased $ $ $ $