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: Estimated sales for July by sales territory: Maine Backyard Chef 310 units at $700 per unit Master Chef 150 units at $1,200 per unit Vermont Backyard Chef 240 units at $750 per unit Master Chef 110 units at $1,300 per unit New Hampshire: Backyard Chef 360 units at $750 per unit Master Chef 180 units at $1,400 per unit b. Estimated inventories at July 1: Direct materials: Grates 290 units Stainless steel 1,500 lbs. Burner subassemblies 170 units 340 units Shelves Finished products: 30 units Backyard Chef 32 units Master Chef c. Desired inventories at July 313 Previous Next Check My Work Direct materials: Grates 340 units Stainless steel 1,800 ibs 155 units 315 units Burner subassemblies Shelves Finished products Backyard Cher Master Chef d. Direct materials used in production 40 units 22 units In manufacture of Backyard Chefs Grates Stainless steel 3 units per unit of product 24 lbs. per unit of product 2 units per unit of product 4 units per unit of product Burner subassemblies Shelves In manufacture of Master Chefs Grates Stainless steel 6 units per unit of product 42 lbs. per unit of product 4 units per unit of product Burner subassemblies Shelves 4 units per unit of product In manufacture of Master Chef: Grates Stainless steel Bumer subassemblies 6 units per unit of product 42 lbs. per unit of product 4 units per unit of product 5 units per unit of product Shelves e. Anticipated purchase price for direct materials $15 per unit Grates Stainless steel Burner subassemblies Shelves Direct labor requirements: $6 perib $110 per unit $10 per unit Backyard Chef: Stamping Department 0.50 h at $17 per hr Forming Department 0,60 hr at $15 per hr 1.00 hr at $14 Assembly Department perhe Master Chef: 0.60 hr. at $17 Stamping Department Forming Department 0.30 h at $15 per hr Assembly Department 1.50 hrs. at $14 per hr Required: 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 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 Chef Master Chef Expected units to be sold Desired inventory, July 31 Total units available Estimated Inventory, July 1 Total units to be produced 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 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 Chef Master Cher Desired Inventory, July 31 Total Estimated Inventory, July 1 Total units to be purchased Unit price Total direct materials to be purchased Accounting numeric field 4. Prepare a direct labor cost budget for July Gourmet Grill Company Direct Labor Cost Budget For the Month Ending July 31 Stamping Forming Department Department Assembly Department Total Hours required for production Backyard Cher Master Chef Total Hourly rate Total direct labor cost Feedback
