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