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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

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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 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: Backyard Cher 310 units at $700 per unit Master Chef 150 units at $1,200 per unit Vermont Backyard Chef 240 units at $750 per unit Master Chel 110 units at $1,300 per unit New Hampshire Backyard Chel 360 units at $750 per unit Master Chet 180 units at $1,400 per unit b. Estimated inventores at July Direct materials Grates 290 units Stainless steel 1,500 lbs Burner subassemblies 170 units Shelves 340 units Finished products Backyard Chel 30 units Master Chef 32 units c. Desired inventories at July 31 Direct materials: Grates 340 units Stainless steel 1,800 lbs. 155 units 315 units Bumer subassemblies Shelves Finished products Backyard Cher 40 units Master Chef 22 units d Direct materials used in production In manufacture of Backyard Chef: Grates Stainless steel 3 units per unit of product 24 lbs. per unit of product 2 units per unit of product 4 units per unit of product Burner subassemblies Shelves In manufacture of Master Chef: Grates 6 units per unit of product Stainless steel 42 lbs. per unit of product Burner subassemblies 4 units per unit of product 5 units per unit of product Shelves e. Anticipated purchase price for direct materials: Grates Stainless steel Burner subassemblies Shelves $15 per unit $6 per lb $110 per unit $10 per unit f. Direct labor requirements: Backyard Chef Stamping Department Forming Department 0.50 hr. at $17 per hr 0.60 hr at $15 per hr 1.00 hr at $14 per hr Assembly Department Master Chef Stamping Department 0.60 hr. at $17 per hr Forming Department 0.80 hr. at $15 per hr Assembly Department 1.50 hrs, at $14 per hr Required: 1. Prepare a sales budget for July Gourmet Grill Company Sales Budget For the Month Ending July 31 Unit Sales Volume Product and Arca 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 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 Chef 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 Grates (units) Stainless Steel (lbs) Burner Sub- assemblies (units) Shelves (units) Total Required units for production Backward Chel 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 Chet Master Chef Desired twentory, 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 Forming Department Department Assembly Department Total 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 a. 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 Chel Master Chef Total Hourly rate Total direct labor cost

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