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 Stainless steel 1,700 lb. Burner subassemblies 190 units b. Estimated inventories at March 1: Direct materials: Grates 320 units Stainless steel 1,700 lb. Burner subassemblies 190 units Shelves 350 units Finished products: Backyard Chef 30 units Master Chef units c. Desired inventories at March 31: Direct materials: Grates 300 units Stainless steel 1,500 lb. Burner subassemblies 210 units Shelves 400 units Finished products: Backyard Chef 40 units Master Chef 26 units d. Direct materials used in production: In manufacture of Backyard Chef: Grates 3 units per unit of product Stainless steel 24 lb. per unit of product Burner subassemblies 2 units per unit of product Shelves 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: Grates $16 per unit Stainless steel $8 per Ib. Burner subassemblies $120 per unit Shelves $12 per unit f. Direct labor requirements: Backyard Chef: Stamping Department 0.50 hr. at $18 per hr. Forming Department 0.60 hr. at $16 per hr. 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. Backyard Chef: Maine 350 800 280,000 Vermont 400 825 330,000 New Hampshire 320 850 272,000 Total 1,070 882,000 Master Chef: Maine 200 1,400 280,00 Vermont 240 1,500 360,000 New Hampshire 200 1,600 320,000 Total 640 960,000 Total revenue from sales 2. Prepare a production budget for March. Gourmet Grill Company 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 1,070 640 Plus desired inventory, March 31 40 26 Total 1,110 666 Less estimated inventory, March 1 Total units to be produced Gourmet Grill Company Direct Materials Purchases Budget For the Month Ending March 31 Burner Sub- Grates Stainless Steel Shelves assemblies Total (units) (Ib.) (units) (units) 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 Forming Assembly Total Department Department Department Hours required for production: Backyard Chef Master Chef Total Hourly rate Total direct labor cost Feedback Check My Work