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: 310 units at $700 per unit 150 units at $1,200 per unit Backyard Chef Master Chef Vermont: 40 units at $750 per unit 110 units at $1,300 per unit Backyard Chef Master Chef New Hampshire: 360 units at $750 per unit 180 units at $1,400 per unit Backyard Chef Master Chef b. Estimated inventories at July 1: Direct materials: Grates 290 units 1,500 Stainless steel Stainless steel Burner subassemblies Shelves lbs 170 units 340 units Finished products Backyard Chef 30 units Master Chef 32 units c. Desired inventories at July 31: Direct materials Grates 340 units 1,800 lbs Stainless steel Burner subassemblies Shelves 155 units 315 units Finished products Backyard Chef 40 units Master Chef 22 units d. Direct materials used in production In manufacture of Backyard Chef: 3 units per unit of product 24 lbs. per unit of product Grates Stainless steel 24 lbs. per unit of product 2 units per unit of product 4 units per unit of product Stainless steel Burner subassemblies Shelves In manufacture of Master Chef: 6 units per unit of product 42 lbs. per unit of product Grates Stainless steel 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: $15 per unit $6 per lb $110 per unit $10 per unit 0.50 hr. at $17 per hr Stamping Department 0.60 hr. at $15 per hr 1.00 hr. at $14 per hr Forming Department Assembly Department Master Chef: 0.60 hr. at $17 per hr 0.80 hr. at $15 per hr 1.50 hrs. at $14 per hr Stamping Department Forming Department Assembly Department Required 1. Prepare a sales budget for July Gourmet Grill Company Sales Budget For the Month Ending July 31 Unit Sales Volume Unit Selling Price Product and Area 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 Company Production Budget For the Month Ending July 31 Units Backyard Master Chef 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 Burner Sub- assemblies (units) Shelves (units) Stainless Steel Total (units) (lbs.) Required units for production: Backyard Chef Master Chef Desired inventory, July 31 Total Estimated inventory, July 1 Total units to be purchased Unit 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 FormingAssembly Department Department Department Total Hours required for production Backyard Chef Master Chef Total Hourly rate Total direct labor cost
