< 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 production 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 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: Fabric Wood Filler Springs Finished products: 420 sq. yds. 580 linear ft. 250 cu. ft. 660 units Finished products: 90 units King Prince 25 units c. Desired inventories at February 28: Direct materials: Fabric 390 sq. yds. Wood Filler 650 linear ft. 300 cu. ft. Springs 540 units Finished products: 80 units 35 units < King Prince d. Direct materials used in production: In manufacture of King: Fabric Wood Filler Springs 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 In manufacture of Prince: Fabric 4.0 sq. yds. per unit of product 13 In manufacture of Prince: Fabric Wood Filler Springs 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 e. Anticipated purchase price for direct materials: $12.00 per sq. yd. Fabric Wood Filler Springs f. Direct labor requirements: King: 7.00 per linear ft. $3.00 per cu. ft. 4.50 per unit Framing Department Cutting Department 1.2 hrs. at $12 per hr. 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. R 1. Prepare a sales budget for February. Royal Furniture Company Sales Budget For the Month Ending February 28 King: Northern Domestic Southern Domestic International Total Prince: Northern Domestic Southern Domestic International Total Total revenue from sales Product and Area Unit Sales Volume Unit Selling Price Total Sales LT 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 King Units Prince h 3. Prepare a direct materials purchases budget for February. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Royal Furniture Company Direct Materials Purchases Budget For the Month Ending February 28 Direct Materials. Fabric (sq. yds.) Wood (linear ft.) Filler Springs Total (cu. ft.) (units) Required units for production: King Prince Desired inventory, February 28 Total Estimated inventory, February 1 Total units to be purchased Unit price Total direct materials to be purchased i 4. Prepare a direct labor cost budget for February. Royal Furniture Company Direct Labor Cost Budget For the Month Ending February 28. Framing Department Hours required for production: King Prince Total Hourly rate Total direct labor cost Cutting Department Upholstery Department. Total