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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
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 350 units at $800 per unit Master Chef 200 units at $1,400 per unit Vermont: Backyard Chef 400 units at $825 per unit Master Chef 240 units at $1,500 per unit New Hampshire: Backyard Chef 320 units at $850 per unit Master Chef 200 units at $1,600 per unit b. Estimated inventories at March 1: Direct materials: Grates 320 units Stainless steel 1,700 lb. Burner subassemblies 190 units Shelves 350 units Finished products: Backyard Chef 30 units Master Chef 36 units c. Desired inventories at March 31: Direct materials: Grates 300 units Stainless steel 1,500 lb. Burner subassemblies 210 units Shelves 400 units Finished products: Backyard Chef 40 units Master Chef 26 units d. Direct materials used in production: In manufacture of Backyard Chef: Grates 3 units per unit of product Stainless steel 24 lb. per unit of product Burner subassemblies 2 units per unit of product Shelves 4 units per unit of product In manufacture of Master Chef: Grates 6 units per unit of product Stainless steel 42 lb. per unit of product Burner subassemblies 4 units per unit of product Shelves 5 units per unit of product e. Anticipated purchase price for direct materials: Grates $16 per unit Stainless steel $8 per lb. Burner subassemblies $120 per unit Shelves $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. Assembly Department 1.50 hrs. at $15 per hr.
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
350 units at $800 per unit
Master Chef
200 units at $1,400 per unit
Vermont:
Backyard Chef
400 units at $825 per unit
Master Chef
240 units at $1,500 per unit
New Hampshire:
Backyard Chef
320 units at $850 per unit
Master Chef
200 units at $1,600 per unit
b. Estimated inventories at March 1:
Direct materials:
Grates
320 units
Stainless steel
1,700 lb.
Burner subassemblies
190 units
Shelves
350 units
Finished products:
Backyard Chef
30 units
Master Chef
36 units
c. Desired inventories at March 31:
Direct materials:
Grates
300 units
Stainless steel
1,500 lb.
Burner subassemblies
210 units
Shelves
400 units
Finished products:
Backyard Chef
40 units
Master Chef
26 units
d. Direct materials used in production:
In manufacture of Backyard Chef:
Grates
3 units per unit of product
Stainless steel
24 lb. per unit of product
Burner subassemblies
2 units per unit of product
Shelves
4 units per unit of product
In manufacture of Master Chef:
Grates
6 units per unit of product
Stainless steel
42 lb. per unit of product
Burner subassemblies
4 units per unit of product
Shelves
5 units per unit of product
e. Anticipated purchase price for direct materials:
Grates
$16 per unit
Stainless steel
$8 per lb.
Burner subassemblies
$120 per unit
Shelves
$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.
Assembly Department
1.50 hrs. at $15 per hr.
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