Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets

The budget director of Royal Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for February is summarized as follows:

a$.$ Estimated sales of King and Prince chairs for February by sales territory:

Northern Domestic:

King $610$ units at $$780$ per unit

Prince $750$ 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 $28$:

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 $6\mathrm{.}0$ sq$.$ yds$.$ per unit of product

Wood $38$ linear ft$.$ per unit of product

Filler $4\mathrm{.}2$ cu$.$ ft$.$ per unit of product

Springs $16$ units per unit of product

In manufacture of Prince:

Fabric $4\mathrm{.}0$ sq$.$ yds$.$ per unit of product

Wood $26$ linear ft$.$ per unit of product

Filler $3\mathrm{.}4$ cu$.$ ft$.$ per unit of product

Springs $12$ units per unit of product

e$.$ Anticipated purchase price for direct materials:

Fabric $$12\mathrm{.}00$ per sq$.$ yd$.$

Wood $7\mathrm{.}00$ per linear ft$.$

Filler $$3\mathrm{.}00$ per cu$.$ ft$.$

Springs $4\mathrm{.}50$ per unit

f$.$ Direct labor requirements:

King:

Framing Department $1\mathrm{.}2$ hrs$.$ at $$12$ per hr$.$

Cutting Department $0\mathrm{.}5$ hr$.$ at $$14$ per hr$.$

Upholstery Department $0\mathrm{.}8$ hr$.$ at $$15$ per hr$.$

Prince:

Framing Department $1\mathrm{.}0$ hr$.$ at $$12$ per hr$.$

Cutting Department $0\mathrm{.}4$ hr$.$ at $$14$ per hr$.$

Upholstery Department $0\mathrm{.}6$ hr$.$ at $$15$ per hr$.$

Required:

$1.$ Prepare a sales budget for February.

Royal Furniture Company

Sales Budget

For the Month Ending February $28$

Product and Area Unit Sales

Volume Unit Selling

Price Total Sales

King:

Northern Domestic fill in the blank $1$

$fill in the blank $2$

$fill in the blank $3$

Southern Domestic fill in the blank $4$

fill in the blank $5$

fill in the blank $6$

International fill in the blank $7$

fill in the blank $8$

fill in the blank $9$

Total fill in the blank $10$

$fill in the blank $11$

Prince:

Northern Domestic fill in the blank $12$

$fill in the blank $13$

$fill in the blank $14$

Southern Domestic fill in the blank $15$

fill in the blank $16$

fill in the blank $17$

International fill in the blank $18$

fill in the blank $19$

fill in the blank $20$

Total fill in the blank $21$

$fill in the blank $22$

Total revenue from sales $fill in the blank $23$

$2.$ 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

Expected units to be sold

fill in the blank $25$

fill in the blank $26$

Desired inventory, February $28$

fill in the blank $28$

fill in the blank $29$

Total units available

fill in the blank $31$

fill in the blank $32$

Estimated inventory, February $1$

fill in the blank $34$

fill in the blank $35$

Total units to be produced

fill in the blank $37$

fill in the blank $38$

$3.$ Prepare a direct materials purchases budget for February. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Royal Furniture Company

Direct Materials Purchases Budget

For the Month Ending February $28$

Direct Materials

Fabric

$($sq$.$ yds$.)$ Wood

$($linear ft$.)$ Filler

$($cu$.$ ft$.)$ Springs

$($units$)$ Total

Required units for production:

King fill in the blank $39$

fill in the blank $40$

fill in the blank $41$

fill in the blank $42$

Prince fill in the blank $43$

fill in the blank $44$

fill in the blank $45$

fill in the blank $46$

Desired inventory, February $28$ fill in the blank $47$

fill in the blank $48$

fill in the blank $49$

fill in the blank $50$

Total fill in the blank $51$

fill in the blank $52$

fill in the blank $53$

fill in the blank $54$

Estimated inventory, February $1$ fill in the blank $55$

fill in the blank $56$

fill in the blank $57$

fill in the blank $58$

Total units to be purchased fill in the blank $59$

fill in the blank $60$

fill in the blank $61$

fill in the blank $62$

Unit price $fill in the blank $63$

$fill in the blank $64$

$fill in the blank $65$

$fill in the blank $66$

Total direct materials to be purchased $fill in the blank $67$

$fill in the blank $68$

$fill in the blank $69$

$fill in the blank $70$

$fill in the blank $71$

$4.$