Question
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
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 |
Shelves | 350 units |
Finished products: | |
Backyard Chef | 30 units |
Master Chef | 36 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 lb. |
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 | 1.00 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. |
Required:
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 | fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 | |
Vermont | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 | |
New Hampshire | 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 | ||
Master Chef: | ||||
Maine | fill in the blank 12 | $fill in the blank 13 | $fill in the blank 14 | |
Vermont | fill in the blank 15 | fill in the blank 16 | fill in the blank 17 | |
New Hampshire | 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 March.
Gourmet Grill Company Production Budget For the Month Ending March 31 | ||
Units | ||
Backyard Chef | Master Chef | |
Expected units to be sold | fill in the blank 24 | fill in the blank 25 |
Plus desired inventory, March 31 | fill in the blank 26 | fill in the blank 27 |
Total units required | fill in the blank 28 | fill in the blank 29 |
Less estimated inventory, March 1 | fill in the blank 30 | fill in the blank 31 |
Total units to be produced | fill in the blank 32 | fill in the blank 33 |
3. Prepare a direct materials purchases budget for March.
Gourmet Grill Company Direct Materials Purchases Budget For the Month Ending March 31 | |||||
Grates (units) | Stainless Steel (lb.) | Burner Sub- assemblies (units) | Shelves (units) | Total | |
Required units for production: | |||||
Backyard Chef | fill in the blank 34 | ||||
Master Chef | fill in the blank 38 | ||||
Plus desired inventory, March 31 | fill in the blank 42 | ||||
Total units required | fill in the blank 46 | ||||
Less estimated inventory, March 1 | fill in the blank 50 | ||||
Total units to be purchased | fill in the blank 54 | ||||
Unit price | $fill in the blank 58 | ||||
Total direct materials to be purchased | $fill in the blank 62 |
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 | fill in the blank 67 | fill in the blank 68 | ||||||
Master Chef | fill in the blank 70 | fill in the blank 71 | ||||||
Total hours required | fill in the blank 73 | fill in the blank 74 | ||||||
Hourly rate | $fill in the blank 76 | $fill in the blank 77 | ||||||
Total direct labor cost | $fill in the blank 79 | $fill in the blank 80 |
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