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: Direct materials: Fabric Wood Filler Springs 420 sq. yds. 580 linear ft. 250 cu. ft. 660 units Springs Finished products: King Prince 660 units 90 units 25 units c. Desired inventories at February 28: Direct materials: Fabric Wood Filler Springs 390 sq. yds. 650 linear ft. 300 cu. ft. 540 units Finished products: King 80 units Prince 35 units d. Direct materials used in production: 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: $12.00 per sq. yd. Fabric Wood Filler Springs f. Direct labor requirements: King: Framing Department 7.00 per linear ft. $3.00 per cu. ft. 4.50 per unit 1.2 hrs. at $12 per hr. 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. 1. Prepare a sales budget for February. King: Northern Domestic Southern Domestic International Total Prince: Northern Domestic Southern Domestic International Total Total revenue from sales Product and Area Royal Furniture Company Sales Budget For the Month Ending February 28 Unit Sales Unit Selling Total Sales Volume Price 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 3. Prepare a direct materials purchases budget for February. For those boxes in which you must enter subtracted or negative numbers us Royal Furniture Company Direct Materials Purchases Budget For the Month Ending February 28 Direct Materials 3. Prepare a direct materials purchases budget for February. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Royal Furniture Company Direct Materials Purchases Budget For the Month Ending February 28 Direct Materials Fabric (sq. yds.) Wood (linear ft.) Filler (cu. ft.) Springs (units) Total Required units for production: King Prince Desired inventory, February 28 Total 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. 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. Hours required for production: King Prince Total Hourly rate Total direct labor cost Royal Furniture Company Direct Labor Cost Budget For the Month Ending February 28 Framing Department Cutting Upholstery Department Department Total Screen capture now Screenshot taken Show in folder Copied to clipboard