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 420 sq. yds. Wood 580 linear ft. Filler 250 cu. ft. Springs 660 units Finished products: King 90 units Prince 25 units c. Desired inventories at February 28: Direct materials: Fabric 390 sq. yds. Wood 650 linear ft. Filler 300 cu. ft. Springs 540 units Finished products: King 80 units Prince 35 units d. Direct materials used in production: In manufacture of King: Fabric 6.0 sq. yds. per unit of product Wood 38 linear ft. per unit of product Filler 4.2 cu. ft. per unit of product Springs 16 units per unit of product In manufacture of Prince: Fabric 4.0 sq. yds. per unit of product Wood 26 linear ft. per unit of product Filler 3.4 cu. ft. per unit of product Springs 12 units per unit of product e. Anticipated purchase price for direct materials: Fabric $12.00 per sq. yd. Wood 7.00 per linear ft. Filler $3.00 per cu. ft. Springs 4.50 per unit f. Direct labor requirements: King: Framing Department 1.2 hrs. at $12 per hr. Cutting Department 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. Required: 1. Prepare a sales budget for February. Royal Furniture Company Sales Budget For the Month Ending February 28 Product and Area Unit Sales Volume Unit Selling Price Total Sales King: Northern Domestic fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Southern Domestic fill in the blank 4 fill in the blank 5 fill in the blank 6 International fill in the blank 7 fill in the blank 8 fill in the blank 9 Total fill in the blank 10 $fill in the blank 11 Prince: Northern Domestic fill in the blank 12 $fill in the blank 13 $fill in the blank 14 Southern Domestic fill in the blank 15 fill in the blank 16 fill in the blank 17 International fill in the blank 18 fill in the blank 19 fill in the blank 20 Total fill in the blank 21 $fill in the blank 22 Total revenue from sales $fill in the blank 23 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 Units King Prince Expected units to be sold fill in the blank 25 fill in the blank 26 Desired inventory, February 28 fill in the blank 28 fill in the blank 29 Total units available fill in the blank 31 fill in the blank 32 Estimated inventory, February 1 fill in the blank 34 fill in the blank 35 Total units to be produced fill in the blank 37 fill in the blank 38 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 (cu. ft.) Springs (units) Total Required units for production: King fill in the blank 39 fill in the blank 40 fill in the blank 41 fill in the blank 42 Prince fill in the blank 43 fill in the blank 44 fill in the blank 45 fill in the blank 46 Desired inventory, February 28 fill in the blank 47 fill in the blank 48 fill in the blank 49 fill in the blank 50 Total fill in the blank 51 fill in the blank 52 fill in the blank 53 fill in the blank 54 Estimated inventory, February 1 fill in the blank 55 fill in the blank 56 fill in the blank 57 fill in the blank 58 Total units to be purchased fill in the blank 59 fill in the blank 60 fill in the blank 61 fill in the blank 62 Unit price $fill in the blank 63 $fill in the blank 64 $fill in the blank 65 $fill in the blank 66 Total direct materials to be purchased $fill in the blank 67 $fill in the blank 68 $fill in the blank 69 $fill in the blank 70 $fill in the blank 71 4. Prepare a direct labor cost budget for February. Royal Furniture Company Direct Labor Cost Budget For the Month Ending February 28 Framing Department Cutting Department Upholstery Department Total Hours required for production: King fill in the blank 72 fill in the blank 73 fill in the blank 74 Prince fill in the blank 75 fill in the blank 76 fill in the blank 77 Total fill in the blank 78 fill in the blank 79 fill in the blank 80 Hourly rate $fill in the blank 81 $fill in the blank 82 $fill in the blank 83 Total direct labor cost $fill in the blank 84 $fill in the blank 85 $fill in the blank 86 $fill in the blank 87