P13-1 Sales, production, direct materials purchases, and direct labor cost The budget director of Royal British Furniture Company requests estimates of sales, pro- duction, and other operating data from the various administrative units every month. Selected information concerning sales and production for March is summarized as follows: 4. Estimated sales of William and Kate chairs for March by sales territory: Eastern Domestic: William 7,500 units at $800 per unit Kate 6,000 units at $650 per unit Western Domestic William 6,000 units at $700 per unit Kate 5,000 units at $550 per unit International: William 2,500 units at $600 per unit Kate 1,000 units at $350 per unit b. Estimated inventories at March 1: Direct materials Finished products Fabric 5,500 sq yds. William 1,500 units Wood 13,700 lineal ft. Kate 300 units Filler 3800 cu.ft. Springs 3,500 units c. Desired inventories at March 31: Direct materials Finished products Fabric 9,000 sq yds. William 2.000 units Wood 20.000 lineal ft Kate 900 units Filler 5,000 cu.ft. Springs 7.500 units d. Direct materials used in production: In manufacture of William Fabric 4.0 sq.yds, per unit of product Wood 16 lineal ft. per unit of product Filler 3.8 cu.ft per unit of product Springs 14 units per unit of product In manufacture of Kate: Fabric 25 sq yds. per unit of product Wood 12 lineal ft. per unit of product Filler 3.2 cu.ft.per unit of product Springs 10 units per unit of product c. Anticipated purchase price for direct materials Fabric $9.00 per sq. yd. Filler $1.50 per cu.ft Wood 5.00 per lineal ft. Springs 2.00 per unit f. Direct labor requirements: William: Framing Department 25 hrs at 515 per hr. Cutting Department 1.0 hr. at $12 per hr Upholstery Department 3.0 hrs at $16 per hr Kate: Framing Department 15 hrs at $15 per hr Cutting Department 05 ht at $12 per hr Upholstery Department 20 hrs at 516 per hr. Instructions 1. Prepare a sales budget for March. 2. Prepare a production budget for March. 3. Prepare a direct materials purchases budget for March 1. Prepare a direct labor cost budget for March