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PR 6-2B Sales, production, direct materials purchases, and direct labor cost budgets OBJ. 4 The budget director of Royal Furniture Company requests estimates of sales,

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PR 6-2B Sales, production, direct materials purchases, and direct labor cost budgets OBJ. 4 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 2016 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 750 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: Finished products: Fabric 420 sq yds. King 90 units Wood 580 linear ft. Prince 25 units Filler 250 cu.ft Springs 660 units Finished products: King.. Prince 80 units 35 units c. Desired inventories at February 28: Direct materials: Fabric 390 sq yds. Wood 650 linear it Filler 300 cu.ft. Springs.. *** 540 units d. Direct materials used in production: In manufacture of King: Fabric Wood 6.0 sq yds per unit of product 38 linear ft per unit of product 4.2 cu. ft.per unit of product 16 units per unit of product Filler - 4.0 sq,yds, per unit of product 26 linear ft. per unit of product 3.4 cu.ft. per unit of product 12 units per unit of product Filler $3.00 per cu.ft 4.50 per unit Springs.. In manufacture of Prince: Fabric Wood Filler Springs c. Anticipated purchase price for direct materials: Fabric $12.00 per sq yd Wood 7.00 per linear ft Springs. f. Direct labor requirements: King: Framing Department Cutting Department Upholstery Department Prince: Framing Department Cutting Department Upholstery Department 1.2 hrs at 512 per hr 0.5hr, at 514 per hr 0.8 h. at 515 perhe 1.0 heat 512 perhe 0.4 h at 514 perhe 06 heat 515 per hr Instructions 1. Prepare a sales budget for February 2. Prepare a production budget for February Prepare a direct laterals purchases budget for February Prepare a direct labor cost hodet for February

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