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 $0\mathrm{.}50$ hr$.$ at $$18$ per hr$.$

Forming Department $0\mathrm{.}60$ hr$.$ at $$16$ per hr$.$

Assembly Department $1\mathrm{.}0$ hr$.$ at $$15$ per hr$.$

Master Chef:

Stamping Department $0\mathrm{.}60$ hr$.$ at $$18$ per hr$.$

Forming Department $0\mathrm{.}80$ hr$.$ at $$16$ per hr$.$

Assembly Department $1\mathrm{.}50$ hrs$.$ at $$15$ per hr$.$

Required:

$1.$  Prepare a sales budget for March.