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 March is summarized as follows: a. Estimated sales for March by sales territory: Maine: Backyard Chef 350 units at $800 per unit Master Chef 200 units at $1.400 per unit Vermont Backyard Chef 400 units at $825 per unit Master Chef 240 units at $1,500 per unit New Hampshire: Backyard Chef 320 units at $850 per unit Master Chef 200 units at $1,600 per unit b. Estimated inventories at March 1: Direct materials: Grates 320 units 1,700 lb. 190 units Stainless steel Bumer subassemblies Shelves Finished products: Backyard Chef 350 units 30 units Master Chef 36 units 300 units c. Desired inventories at March 31: Direct materials: Grates Stainless steel Bumer subassemblies Shelves Finished products: Backyard Chef Master Chef 1,500 lb. 210 units 400 units 40 units 26 units d. Direct materials used in production: In manufacture of Backyard Chef: Grates Stainless steel Burner subassemblies Shelves 3 units per unit of product 24 ib. per unit of product 2 units per unit of product 4 units per unit of product In manufacture of Master Chef: Grates 6 units per unit of product Stainless steel 42 lb. per unit of product Burner subassemblies 4 units per unit of product Shelves 5 units per unit of product e. Anticipated purchase price for direct materials: $16 per unit Grates $8 per lb. Stainless steel $120 per unit Burner subassemblies $12 per unit Shelves f. Direct labor requirements: Backyard Chef: Stamping Department 0.50 br. at $18 per hr.. 0.60 hr. at $16 per hr. Forming Department Assembly Department 1.0 hr. at $15 per hr. Master Chef: Stamping Department 0.60 hr. at $18 per hr. Forming Department 0.80 hr. at $16 per hr. Assembly Department 1.50 hrs. at $15 per hr. 1. Prepare a sales budget for March. Gourmet Grill Company Sales Budget For the Month Ending March 31 Product and Area Unit Sales Volume Unit Selling Price Total Sales Backyard Chef: Maine Vermont New Hampshire Total Master Chef: Maine Vermont New Hampshire Total Total revenue from sales 2. Prepare a production budget for March. Gourmet Grill Company Production Budget For the Month Ending March 31 Units Backyard Chef Master Chef Expected units to be sold Plus desired inventory, March 31 Total Less estimated inventory, March 1 Total units to be produced 3. Prepare a direct materials purchases budget for March Gourmet Grill Company Direct Materials Purchases Budget For the Month Ending March 31 Grotes (units) Stainless Steel (I.) Burner Sub assemblies (units) Shelves (units) Total Required units for production: Backyard Chef Master Chef Plus desired inventory, March 31 Total Less estimated Inventory, March 1 Total units to be purchased Unit price Total direct materials to be purchased 4. Prepare a direct labor cost budget for March. Gourmet Grill Company Direct Labor Cost Budget For the Month Ending March 31 Stamping Department Forming Department Assembly Department Total Hours required for production: Backyard Chef Master Chef Total III-1-1 Hourly rate Total direct labor cost
