Required:

1. Prepare a sales budget for July.

2. Prepare a production budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

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.

4. Prepare a direct labor cost budget for July.

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: 360 units at $750 per Backyard Chef 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. 155 units 315 units Burner subassemblies Shelves Finished products: Backyard Chef Master Chef d. Direct materials used in production: In manufacture of Backyard Chef: 40 units 22 units Grates Stainless steel 3 units per unit of product 24 lbs. per unit of product 2 units per unit of product 4 units per unit of product Burner subassemblies Shelves In manufacture of Master Chef: Grates - Stainless steel 6 units per unit of product 42 lbs. per unit of product 4 units per unit of product 5 units per unit of product Burner subassemblies Shelves e. Anticipated purchase price for direct materials: Grates Stainless steel Burner subassemblies Shelves f. Direct labor requirements: Backyard Chef: Stamping Department $15 per unit $6 per lb. $110 per unit $10 per unit 0.50 hr. at $17 per hr. 0.60 hr. at $15 per hr. Forming Department Backyard Chef: Stamping Department Forming Department 0.50 hr. at $17 per hr. 0.60 hr. at $15 per hr. 1.00 hr. at $14 per Assembly Department hr. Master Chef: Stamping Department Forming Department 0.60 hr. at $17 per hr. 0.80 hr. at $15 per hr. 1.50 hrs. at $14 per hr. Assembly Department Gourmet Grill Company Sales Budget For the Month Ending July 31 Unit Sales Unit Selling Product and Area Volume Price Total Sales Backyard Chef: $ Maine 09 Vermont New Hampshire Total A Master Chef: Maine $ Vermont New Hampshire Total Total revenue from sales Gourmet Grill Company Production Budget For the Month Ending July 31 Units Backyard Chef Master Chef Gourmet Grill Company Direct Materials Purchases Budget For the Month Ending July 31 Stainless Grates Steel (units) (lbs.) Burner Sub- assemblies (units) Shelves (units) Total Required units for production: Backyard Chef Master Chef 2,760 22,080 1,840 3,680 2,580 18,060 1,720 2,150 Desired inventory, July 31 340 1,800 155 315 Total 5,680 41,940 3,715 6,145 290 x 1,500 X 170 x 340 x Estimated inventory, July 1 Total units to be purchased 5,390 40,440 3,545 5,805 $ Unit price $ 15 $ 6 $ 10 110 Total direct materials to be purchased $ 80,850 $ 242,640 $ 389,950 58,050 771,490 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 460 552 920 Master Chef 258 344 645 Total 718 896 1,565 $ $ Hourly rate 17 15 14 $ $ Total direct labor cost 12,206 13,440 21,910 47,556