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 1:1 Direct materials: Fabric Wood Filler 420 sq. yds. 580 linear ft. 250 cu. ft. 560 units Direct materials: Fabric Wood Filler 420 sq. yds. 580 linear ft. 250 cu. ft. Springs 660 units Finished products: King 90 units Prince 25 units c. Desired inventories at February 28: Direct materials: Fabric Wood Filler Springs Finished products Xing Prince 390 sq. yds. 650 linear ft. 300 cu. ft. 540 units 80 units 35 units d. Direct materials used in production: In manufacture of King Fabric 6.0 sq. yds. per unit of product B In manufacture of King: Fabric Wood Filler Springs 6.0 sq. yds. per unit of product 38 linear ft. per unit of product 4.2 cu. ft. per unit of product 16 units per unit of product In manufacture of Prince: Fabric Wood Filler Springs 4.0 sq. yds. per unit of product 26 linear ft. per unit of product 3.4 cu. ft. per unit of product 12 units per unit of product e. Anticipated purchase price for direct materials: Fabric Wood Filler Springs f. Direct labor requirements: $12.00 per sq. yd. 7.00 per linear ft. $3.00 per cu. ft. 4.50 per unit King: eBook 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 King: Northern Domestic Southern Domestic International Total Prince: Northern Domestic Southern Domestic International Product and Area Unit Sales Volume Total Total revenue from sales Unit Selling Price Total Sales 610 780 V 475,800 340 V 780 V 265,200 360 V 850 306,000 1,310 V 1,047,000 750 550 V 412,500 440 550 V 242,000 290 V 600 174,000 1,480 828,500 1,875,500 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 1,310 1,480 Desired inventory, February 28 80 35 Total units available 1,390 v 1,515 v Estimated inventory, February 1 Total units to be produced 1,300 90 X 125 X 1,490 Prenare a direct materia for Fisheltery Corthnes havse in which you must enter enhtracte Direct Materials Purchases Budget For the Month Ending February 28 Direct Materials Fabric (sq. yds.) Wood (linear ft.) Filler (cu. ft.) Springs Total (units) Required units for production: King 7,800 V 49,400 V 5,460 20,800 Prince 5,960 V 38,740 V 5,066 17,880 Desired inventory, February 28 390 V 650 300 V 540 Total 14,150 V 88,790 10,826 39,220 V Estimated inventory, February 1 Total units to be purchased Unit price Total direct materials to be purchased 4. Prepare a direct labor cost budget for February. 4. Prepare a direct labor cost budget for February. Royal Furniture Company Direct Labor Cost Budget For the Month Ending February 28 Framing Department Hours required for production: Cutting Department Upholstery Total Department King Prince Total Hourly rate: Total direct labor cost Feedback Check My Work Remember to take into account expected units to be sold, desired units in ending inventory and estimated units in beginning inventory when