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 foliows: a. Estimated sales for Joly by sales territory: Maine: Backyard Chef Master Chef Vermont 310 units at $700 per unit 150 units at $1,200 per unit Backyard Cher 240 units at $750 per unit 110 units at $1,300 per unit Master Chef New Hampshire: Backyard Chef 360 units at $750 per unit 180 units at $1,400 per unit Master Chef b. Estimated inventories at July 1: Direct materials: Grates 290 units 1,500 lbs 170 units 340 units Stainless steel Burner subassemblies Shelves Finished products: Backyard Chef Master Chef 30 units 32 units Check My Work 5 more Cher My Work in maining Previous Next c Desired inventories at July 31: Direct materials: Grates 340 units Stainless steel 1,800 Ibs 155 units 315 units Burner subassemblies Shelves Finished products: Backyard Cher Master Chef 40 units 22 units d. Direct materials used in production In manufacture of Backyard Chef: 3 units per unit of product Grates 24 lbs. per unit of product Stainless steel Burner subassemblies 2 units per unit of product 4 units per unit of product Shelves in manufacture of Master Chef: Grates 6 units per unit of product 42 lbs. Der unit of BOOK Burner subassemblies 4 units per unit of product 5 units per unit of product Shelves e. Anticipated purchase price for direct materials: Grates $15 per unit Stainless steel Burner subassemblies Shelves $6 per ib. $110 per unit $10 per unit 1. 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 1.50 hrs. at $14 Assembly Department per hr 1. Prepare a sales budget for July Gourmet Grill Company Sales Budget For the Month Ending July 31 Unit Sales Volume Product and Area Unit Selling Price Total Sales Backyard Chef: Maine Vermont S New Hampshire Total Master Chef: Maine 5 Vermont 252,000 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 Chef Master Cher 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: Backyard Cher Master Chef Desired inventory, 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 Department Forming Department Assembly Department Total Hours required for production Backyard Cher Master Cher Total Hourly rate Total direct labor cost
