Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of Royal Furniture Company requests estimates of sales, production, and other oper administrative units every month. Selected information concerning sales and production for February is : a. Estimated sales of King and Prince chairs for February by sales territory: Northern Domestic: King 610 units at $780 per unit Prince 7'50 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,r 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 Upholstery Department 0.6 hr. at $15 per hr. Required: 1. Prepare a sales budget for February. Royal Furniture Company Sales Budget For the Month Ending February 28 Unit Sales Unit Selling Product and Area Total Sales Volume Price King: Northern Domestic Southern Domestic International Total Prince: Northern Domestic Southern DomesticSouthern Domestic International Total Total revenue from sales 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 numbersRequired units for production: King Prince Desired inventory, February 23 Total Estimated inventory, February 1 Total units to be purchased Unit price Total direct materials to be purchased Royal Furniture Company Direct Materials Purchases Budget For the Month Ending February 28 Direct Materials Fabric Wood Filler Springs (sq. yds.) {linear ft.) (cu. ft.) (units) 35 $ $ $ $ $ : $ $ 4. Prepare a for February. 4. Prepare a for February. Royal Furniture Company Direct Labor Cost Budget For the Month Ending February 28 Framing Cutting Upholstery T t I o a Department Department Department Hours required for production: King I | | l l | Prince I I I I I I Total I I I I I I Hourly rate $I I $I I $I I Total direct labor cost $I I $I I $I I $I