NOTE: PLEASE KEEP ANSWERS IN FORMAT BELOW- You'll see "fill in the blank" where answers belong. Thank you so very much!

1. 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	310 units at $700 per unit
   Master Chef	150 units at $1,200 per unit
   Vermont:
   Backyard Chef	240 units at $750 per unit
   Master Chef	110 units at $1,300 per unit
   New Hampshire:
   Backyard Chef	360 units at $750 per unit
   Master Chef	180 units at $1,400 per unit

   b. Estimated inventories at July 1:

   Direct materials:
   Grates	290 units
   Stainless steel	1,500 lbs.
   Burner subassemblies	170 units
   Shelves	340 units
   Finished products:
   Backyard Chef	30 units
   Master Chef	32 units

   c. Desired inventories at July 31:

   Direct materials:
   Grates	340 units
   Stainless steel	1,800 lbs.
   Burner subassemblies	155 units
   Shelves	315 units
   Finished products:
   Backyard Chef	40 units
   Master Chef	22 units

   d. Direct materials used in production:

   In manufacture of Backyard Chef:
   Grates	3 units per unit of product
   Stainless steel	24 lbs. 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 lbs. 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	$15 per unit
   Stainless steel	$6 per lb.
   Burner subassemblies	$110 per unit
   Shelves	$10 per unit

   f. 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:
   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.

   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	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 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
   Expected units to be sold	fill in the blank 25	fill in the blank 26
   Desired inventory, July 31	fill in the blank 28	fill in the blank 29
   Total units available	fill in the blank 31	fill in the blank 32
   Estimated inventory, July 1	fill in the blank 34	fill in the blank 35
   Total units to be produced	fill in the blank 37	fill in the blank 38

   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	fill in the blank 39	fill in the blank 40	fill in the blank 41	fill in the blank 42
   Master Chef	fill in the blank 43	fill in the blank 44	fill in the blank 45	fill in the blank 46
   Desired inventory, July 31	fill in the blank 47	fill in the blank 48	fill in the blank 49	fill in the blank 50
   Total	fill in the blank 51	fill in the blank 52	fill in the blank 53	fill in the blank 54
   Estimated inventory, July 1	fill in the blank 55	fill in the blank 56	fill in the blank 57	fill in the blank 58
   Total units to be purchased	fill in the blank 59	fill in the blank 60	fill in the blank 61	fill in the blank 62
   Unit price	$fill in the blank 63	$fill in the blank 64	$fill in the blank 65	$fill in the blank 66
   Total direct materials to be purchased	$fill in the blank 67	$fill in the blank 68	$fill in the blank 69	$fill in the blank 70	$fill in the blank 71

   4. Prepare a direct labor cost budget for July.

   Gourmet Grill Company Direct Labor Cost Budget For the Month Ending July 31
   			Stamping Department		Forming Department		Assembly Department	Total
   Hours required for production:
   	Backyard Chef		fill in the blank 72		fill in the blank 73		fill in the blank 74
   	Master Chef		fill in the blank 75		fill in the blank 76		fill in the blank 77
   	Total		fill in the blank 78		fill in the blank 79		fill in the blank 80
   Hourly rate			$fill in the blank 81		$fill in the blank 82		$fill in the blank 83
   Total direct labor cost			$fill in the blank 84		$fill in the blank 85		$fill in the blank 86	$fill in the blank 87

   Feedback

   Remember to take into account expected units to be sold, desired units in ending inventory and estimated units in beginning inventory when calculating total units to be produced.

   Once sales quantities are estimated, the expected sales revenue can be determined.

   Remember to take into account materials required for production, desired ending materials inventory and estimated beginning materials inventory when calculating direct materials to be purchased.