Sales, Production Direct Materials Purchases, and direct Labor Cost Budgets The budget director of Gourmet Grit Company requests estimates et salles, production, and cener operating data from the various administrative units every month. Selected normation conterning sales and production for July is summarized as follows: Estimated sales for dy by sales territory Maine Backyard Chel 310 i 1700 per unit Master Chef 150 unts at $1,200 per un Vermont Blackyard Cher 240 units at $750 per un Master Chef 110 units 1.300 pert New Hampshire Backyard Chel 360 units Master Chef 100 units at $1,400 per unit Cima iwertones at 1! Direct materials: Grates 290 units Stainless steel 1.500 Ft turner subestemtes 170 uniks 340 Shelves Finished products Backyard Cher 30 units Master Chef 32 unit c. Dested inventories at 31 c Desired Inventories at July 31: Direct materials: Grates Stainless steel 340 units 1,800 lbs. 155 units 315 units Burner subassemblies Shelves Finished products Backyard Cher Master Chef d. Direct materials used in production: In manufacture of Backyard Chef: 40 units 22 units Grates Stainless steel units per unit of product 24 lbs. per unit of product 2 units per unit of product 4 units per unit of product Burner ner subassemblies Shelves In manufacture of Master Chel Grates 6 units per unit or product Stainless steel 42 lbs. per unit of product Burner subassemblies UGETUER product 5 units per unit of product Shelves e. Anticipated purchase price for direct materials: Grates Stainless steel Burner subassemblies Shelves 1. Direct labor requirements: Backyard Chef: $15 per unit 56 per $110 per unit $10 per unit Stamping Department 0.50 hr. at 512 per her Farming Department 0.60 hr. et IS per hr Assembly Department 1.00 hr. at $14 per hr. Master Chef Stamping Department 0.60 hr. at $17 per hr. 0.80 hr. at $15 per hr. Forming Department Assembly Department 1.50 hrs. at $14 Der hr Required: Required: 1. Prepare a sales budget for July Gourmet Grill Company Sales Budget For the Month Ending July 31 Product and Area Unit Sales Volume Unit Selling Price Total Sales Backyard Chef: Maine Vermont New Hampshire Total Master Chef: Maine Vermont New Hampshire Total Total revenue from sales 2. Prepare a production budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Gourmet Grill ComAnU Chor Mind 2. Prepare a production budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign Gourmet Grill Company Production Budget For the Month Ending July 31 Units Backyard Master Chef Cher 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 Gourmet Grill Company Direct Materials Purchases Budget For the Month Ending July 31 Grates (units) Stainless Steel (lbs.) Burner Sub- assemblies (units) Shelves (units) Total Required units for production: Backyard Cher Backyard Master Chef Desired Inventory. 31 TO Estimated inventory, July 1 Total units to be purchased Unt price Total direct materials to be purchased 4. Prepare a direct labor cost budget for July Gourmet Grill Company Direct Labor Cost Budget For the Month Ending July 31 Stamping Forming Department Department Assembly Department Total Hours required for production Backyard Chef Master Chef Total Hourly rate Total direct labor cost
