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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 produclJ'on 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 F50 units at $550 per unit Southern Domestic: King 340 units at $780 per unit Prince 440 units at $550 per unit International: ) King 360 units at $850 per unit Prince 290 units at $600 per unit b. Estimated inventories at February 1: Direct materials: Fabric 420 sq. yds. Wood 580 linear ft. Filler 250 cu. ft. Springs 660 units Finished products: King 90 units Prince 25 units c. Desired inventories at February 28: Direct materials: Fabric 39D sq. 1,rds. WDDCl 65D linear ft. Filler 30D cu. ft. Springs 54D units Finished products: King SCI units Prince 35 units d. Direct materials used in production: ' In manufacture of King: Fabric SJ] sq. yds. per unit of product \"fund 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. sq. yds. per unit of product WDDCl 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 $12.0 per sq. 1rd. WDDCl EDD per linear Ft. Filler $3.0D per cu. ft. Springs 4.5[1 per unit f. Direct labor requirements: King: Framing Department 1.2 hrs. at $12 per hr. Cutting Department 0.5 hr. at $14 per hr. Upholstery Department 0.8 hr. at $15 per hr. Prince: Framing Department 1.0 hr. at $12 per hr. Cutting Department 0.4 hr. at $14 per hr. Upholstery Department 0.6 hr. at $15 per hr. Required: 1. Prepare a sales budget for February.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 For the Month Ending February 28 Units King Prince Expected units to be sold v 1,310 V 1,480 Desired inventory, February 28 V Total units available v Estimated inventory, February 1 v Total units to be produced v3. Prepare a direct materials purchases budget for February. For these boxes in which you must enter subtracted or negative numbers use a minus sign. 4. Prepare a direct labor cost budget for February. Royal Furniture Company Direct Labor Cost Budget For the Month Ending February 28 Framing Cutting Upholstery Total Department Department Department Hours required for production: King Prince Total Hourly rate Total direct labor cost1. Prepare a sales budget for February. Royal Furniture Company Sales Budget For the Month Ending February 28 Unit Sales Unit Selling Product and Area Total Sales Volume Price King: Northern Domestic 610 780 475,800 Southern Domestic 340 780 V 265,200 International 360 850 V 306,000 Total 1,310 $ 1,047,000 V Prince: Northern Domestic 750 V 550 V 412,500 Southern Domestic 440 550 V 242,000 International 290 600 V 174,000 V Total 1,480 828,500 Total revenue from sales $ 1,875,500