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	420 sq. yds.
Wood	580 linear ft.
Filler	250 cu. ft.
Springs	660 units
Finished products:
King	90 units
Prince	25 units

c. Desired inventories at February 28:

Direct materials:
Fabric	390 sq. yds.
Wood	650 linear ft.
Filler	300 cu. ft.
Springs	540 units
Finished products:
King	80 units
Prince	35 units

d. Direct materials used in production:

In manufacture of King:
Fabric	6.0 sq. yds. per unit of product
Wood	38 linear ft. per unit of product
Filler	4.2 cu. ft. per unit of product
Springs	16 units per unit of product
In manufacture of Prince:
Fabric	4.0 sq. yds. per unit of product
Wood	26 linear ft. per unit of product
Filler	3.4 cu. ft. per unit of product
Springs	12 units per unit of product

e. Anticipated purchase price for direct materials:

Fabric	$12.00	per sq. yd.
Wood	7.00	per linear ft.
Filler	$3.00	per cu. ft.
Springs	4.50	per unit

f. Direct labor requirements:

King:
Framing Department	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.

Required:

1. Prepare a sales budget for February.

V - 0 X Home X D21 5-1 Prob X Cengage X MindTap X 6 Sophia : X D2L Mileston X Mail - LL X * Ask a Qu X Home x C The bud x + -> C A v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?inprogress=true New Tab Bank Careers and J... mySNHU Login Que whi APA Style: Home -... P In-Text Citations: A... [Solved] Perpetual I... Introduction to Stat. 1% - To keep the w... Ida B Wells Problem Set: Module 5 eBook ? 1. TMM.09.02 Royal Furniture Company 2. PR.08.02B Sales Budget For the Month Ending February 28 3. BE.09.01.EXCEL.ALGO Unit Sales Unit Selling Product and Area Total Sales 4. BE.09.02.EXCEL.ALGO Volume Price King: 5. TMM.08.01 Northern Domestic Southern Domestic International Total Prince: Northern Domestic Southern Domestic International Total Total revenue from sales Type here to search O Eli 81 F A DI ENG 12:45 PM 799 w 11/7/2022V - 0 X Home X D21 5-1 Prob X Cengage X MindTap X 6 Sophia : X D2L Mileston X 0 Mail - LL X * Ask a Qu X Home x C The bud x + -> C A v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?inprogress=true New Tab Bank Careers and J... mySNHU Login Que whi APA Style: Home -... P In-Text Citations: A.. *[Solved] Perpetual I. Introduction to Stat. 1% - To keep the w... Ida B Wells Problem Set: Module 5 eBook ? 1. TMM.09.02 Total revenue from sales 2. PR.08.02B 2. Prepare a production budget for February. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 3. BE.09.01.EXCEL.ALGO Royal Furniture Company 4. BE.09.02.EXCEL.ALGO Production Budget For the Month Ending February 28 5. TMM.08.01 Units King Prince 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 Type here to search O Eli a @ W 81.F A O1 $ENG 12:45 PM 199+ 11/7/2022V - 0 X Home X D21 5-1 Prob X Cengage X MindTap X 6 Sophia : X D2L Mileston X 0 Mail - LL X * Ask a Qu X Home x C The bud x + -> C A v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?inprogress=true New Tab Bank Careers and J... mySNHU Login Que whin APA Style: Home -... P In-Text Citations: A. [Solved] Perpetual I. Introduction to Stat.. 1% - To keep the w... Ida B Wells Problem Set: Module 5 eBook ? 1. TMM.09.02 3. Prepare a direct materials purchases budget for February. For those boxes in which you must enter subtracted or negative numbers use a minus 2. PR.08.02B sign. 3. BE.09.01.EXCEL.ALGO Royal Furniture Company Direct Materials Purchases Budget 4. BE.09.02.EXCEL.ALGO For the Month Ending February 28 5. TMM.08.01 Direct Materials Fabric Wood Filler Springs Total (sq. yds.) (linear ft.) (cu. ft.) (units) 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 Type here to search O Eli 9 W 81.F A DI ENG 12:46 PM 799- 11/7/2022V - 0 X Home X D21 5-1 Prob X Cengage X MindTap X 6 Sophia : X D2L Mileston X 0 Mail - LL X * Ask a Qu X Home x C The bud x + -> C A v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?inprogress=true New Tab Bank Careers and J... mySNHU Login Que whil APA Style: Home -... P In-Text Citations: A.. *[Solved] Perpetual I. Introduction to Stat. He 1% - To keep the w... Ida B Wells Problem Set: Module 5 eBook ? 1. TMM.09.02 Estimated inventory, February 1 Total units to be purchased 2. PR.08.02B Unit price 3. BE.09.01.EXCEL.ALGO Total direct materials to be purchased 4. BE.09.02.EXCEL.ALGO 4. Prepare a direct labor cost budget for February. 5. TMM.08.01 Royal Furniture Company Direct Labor Cost Budget For the Month Ending February 28 Framing Cutting Upholstery Total Department Department Department Hours required for production: King Prince Total Hourly rate Total direct labor cost Type here to search O Eli 81.F A DI ENG 12:46 PM 99- 9 W 11/7/2022