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 March is summarized as follows: a. Estimated sales for March by sales territory Maine Backyard Chef Master Chef Vermont Backyard Chef Master Chef New Hampshire Backyard Chef Master Chef 350 units at $800 per unit 200 units at $1,400 per un 400 units at $825 per unit 240 units at $1,500 per un 320 units at $850 per unt 200 units at $1,600 per unit Estimated inventories at March 1 Direct materiais Grates Stainless steel Burner subassemblies Shelves Finished products Backyard Chef Master Chef Desired inventories at March 31 Direct material 320 1,700 190 units 350 30 units 36 Direct materials: Grates Stainless steel 300 units 1,500 lb. Burner subassemblies 210 units Shelves 400 units Finished products: Backyard Chef Master Chef d. Direct materials used in production: In manufacture of Backyard Chef: Grates Stainless steel Burner subassemblies 40 units 26 units 3 units per unit of product 24 lb. per unit of product 2 units per unit of product 4 units per unit of product Shelves In manufacture of Master Chef: Grates Stainless steel Burner subassemblies Shelves 6 units per unit of product 42 lb. per unit of product 4 units per unit of product 5 units per unit of product e. Anticipated purchase price for direct materials: Grates Stainless steel Burner subassemblies Shelves $16 per unit $8 per lb. $120 per unit $12 per unit f. Direct labor requirements: Backyard Chef: Stamping Department 0.50 hr. at $18 per hr. Forming Department 0.60 hr. at $16 per hr. Assembly Department 1.00 hr. at $15 per hr. Master Chef: Stamping Department 0.60 hr. at $18 per hr. Forming Department 0.80 hr. at $16 per hr. 1.50 hrs. at $15 per hr. Assembly Department Required: 1. Prepare a sales budget for March. Gourmet Grill Company Sales Budget For the Month Ending March 31 Product and Area Backyard Chef: Maine Vermont New Hampshire Total Master Chef: Unit Sales Volume Unit Selling Price Total Sales Master Chef: Maine Vermont New Hampshire Total Total revenue from sales 2. Prepare a production budget for March. Gourmet Grill Company Production Budget For the Month Ending March 31 Expected units to be sold Plus desired inventory, March 31 Total units required Units Backyard Chef Master Chef Less estimated inventory, March 1 Total units to be produced 3. Prepare a direct materials purchases budget for March. Required units for production: Backyard Chef Master Chef Plus desired inventory, March 31 Total units required Less estimated inventory, March 1 Total units to be purchased Unit price Total direct materials to be purchased 4. Prepare a direct labor cost budget for March, Grates (units) Gourmet Grill Company Direct Materials Purchases Budget For the Month Ending March 31 Stainless Steel (lb.) Burner Sub- Shelves assemblies (units) Total (units). Required units for production: Backyard Chef Master Chef Plus desired inventory, March 31 Total units required Less estimated inventory, March 1 Total units to be purchased Unit price Total direct materials to be purchased 4. Prepare a direct labor cost budget for March. Hours required for production: Backyard Chef Master Chef Total hours required Hourly rate Total direct labor cost Gourmet Grill Company Direct Labor Cost Budget For the Month Ending March 31 Stamping Department Forming Department Assembly Department Total