Problem 5-32 - Part C

Sandoval Furniture builds high-end hand-made dining tables. Mackenzie Sandoval, the companys owner, has developed the following sales forecast for 2015.

Because of the time needed to create each table, Sandoval maintains an ending Finished Goods Inventory of 20 percent of the following quarters budgeted sales. Sandoval has been following this inventory policy for several years. The company ended 2014 with 514 tables on hand. The standard cost card for a table is as follows:

Sandoval maintains inventory of American cherry wood equal to 10 percent of the following quarters production needs. On December 31, 2014, Sandovals physical inventory count showed 5,534 board feet of American cherry. Due to an anticipated price increase in 2016, managers want to have 10,035 board feet of American cherry wood in inventory on December 31, 2015. Prepare Sandovals 2015 direct materials purchases budget for American cherry wood. (Round answers to 0 decimal places, e.g. 5,275.)

(C) Prepare Sandovals direct labor budget for 2015. (Round answers to 0 decimal places, e.g. 5,275.)

Please use the following categories:

Forecasted sales (tables) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2,721 2,925 1,697 2,568