Sales, production, direct materials purchases, and direct labor cost budget.

1. A sales budget for August?
2. A production budget for August?
3. A direct materials purchases budget for August?
4. A direct labour cost budget for August?

b. Estimated inventories at August 1: Finished products: 950 units Direct materials: King Fabric ... 4,500 sq. m 280 units Prince Wood . 6,000 lineal m Filler 2,800 cu. m Springs 6,700 units c. Desired inventories at August 31: Finished products: Direct materials: 800 units Fabric .. 4,300 sq. m King ...... 400 units Prince Wood 6,200 lineal m Filler 3,100 cu. m Springs 7,500 units d. Direct materials used in production: In manufacture of King: Fabric ........ 5.0 sq. m per unit of product Wood ..... ..... 35 lineal m per unit of product Filler ......... ........ 3.8 cu. m per unit of product Springs ... 14 units per unit of product In manufacture of Prince: Fabric ............ 3.5 sq. m per unit of product Wood... ............ 25 lineal m per unit of product Filler . . ...... . 3.2 cu. m per unit of product Springs 10 units per unit of product e. Anticipated purchase price for direct materials: Fabric ....... $12.00 per sq. m Wood ........ 8.00 per lineal m Filler . . . .... $3.50 per cu. mn Springs . ... 4.50 per unit f. Direct labour requirements: King: Framing Department. . . . . .. . . . . . . . . 2.5 hrs. at $12 per hr. Cutting Department. 1.5 hrs. at $11 per hr. Upholstery Department . ...... 2.4 hrs. at $14 per hr. Prince : Framing Department 1.8 hrs. at $12 per hr. Cutting Department. 0.5 hrs. at $11 per hr. Upholstery Department . ...... 2.0 hrs. at $14 per hr. Instructions 1. Prepare a sales budget for August. 2. Prepare a production budget for August. 3. Prepare a direct materials purchases budget for August. 4. Prepare a direct labour cost budget for August.PR 23-2A The budget director of Regal Furniture Company requests estimates of sales, produc- Sales, production, direct materials tion, and other operating data from the various administrative units every month. purchases, and direct Selected information concerning sales and production for August 2010 is summarized labour cost budgets as follows: obj. 4 a. Estimated sales of King and Prince chairs for August by sales territory: Northern Domestic: King ...... 5,500 units at $750 per unit Prince ..... 6,900 units at $520 per unit Southern Domestic: King ... 3,200 units at $690 per unit 3. Total direct Prince ... 4,000 units at $580 per unit materials purchases, International: $7,721,394 King ..... 1,450 units at $780 per unit Prince . 900 units at $600 per unit