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. 0.8 hr. at $15 per hr. Upholstery Department Prince: Framing Department Cutting Department Upholstery Department 1.0 hr. at $12 per hr. 0.4 hr. at $14 per hr. 0.6 hr. at $15 per hr. Required: 1. Prepare a sales budget for February. Royal Furniture Company Sales Budget For the Month Ending February 28 Unit Sales Product and Area Volume Unit Selling Price Total Sales King: Northern Domestic 610 $ 780 $ 475,800 340 7807 Southern Domestic International 360 850 265,200 306,000 $ 1,047,000 Total 1,310 Prince: Northem Domestic 750 550 $ 412,500 Southern Domestic 440 550 242,000 ITIN International 290 600 174,000 Total 1,480 $ 828,500