Sales, Production, Direct Materials Purchases, and Direct Labor Cost The budget director of Royal British 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 March is summarized as follows: a. Estimated sales of William and Kate chairs for March by sales territory: Eastern Domestic: William 7,750 units at $800 per unit Kate 6,000 units at $650 per unit Western Domestic: William 6,000 units at $700 per unit Kate 5,000 units at $550 per unit International: William 3,250 units at $600 per unit Kate 1,000 units at $350 per unit b. Estimated inventories at March 1: Direct materials: Finished products: Fabric 5,500 sq. yds. William 1,500 units Wood 13,700 lineal ft. Kate 300 units Filler 3,800 cu. ft. Springs 3,500 units c. Desired inventories at March 31: Direct materials: Finished products: Fabric 9,000 sq. yds. William 2,000 units Wood 20,000 lineal ft. Kate 900 units Filler 5,000 cu. ft. Springs 7,500 units d. Direct materials used in production: In manufacture of William: Fabric 4.0 sq. yds. per unit of product Wood 16 lineal ft. per unit of product Filler 3.8 cu. ft. per unit of product Springs 14 units per unit of product In manufacture of Kate: Fabric 2.5 sq. yds. per unit of product Wood 12 lineal ft. per unit of product Filler 3.2 cu. ft. per unit of product Springs 10 units per unit of product e. Anticipated purchase price for direct materials: Fabric $9.00 per sq. yd. Filler $1.50 per cu. ft. Wood 5.00 per lineal ft. Springs 2.00 per unit f. Direct labor requirements: William: Framing Department 2.5 hrs. at $15 per hr. Cutting Department 1.0 hr. at $12 per hr. Upholstery Department 3.0 hrs. at $16 per hr. Kate: Framing Department 1.5 hrs. at $15 per hr. Cutting Department 0.5 hr. at $12 per hr. Upholstery Department 2.0 hrs. at $16 per hr. Required: Question Content Area 1. Prepare a sales budget for March. Royal British Furniture Company Sales Budget For the Month Ending March 31 Product and Area Unit Sales Volume Unit Selling Price Total Sales William: Eastern Domestic fill in the blank dfa15dfe3fc2f85_1 7,750 $fill in the blank dfa15dfe3fc2f85_2 800 $fill in the blank dfa15dfe3fc2f85_3 6,200,000 Western Domestic fill in the blank dfa15dfe3fc2f85_4 6,000 fill in the blank dfa15dfe3fc2f85_5 700 fill in the blank dfa15dfe3fc2f85_6 4,200,000 International fill in the blank dfa15dfe3fc2f85_7 3,250 fill in the blank dfa15dfe3fc2f85_8 600 fill in the blank dfa15dfe3fc2f85_9 1,950,000 Total fill in the blank dfa15dfe3fc2f85_10 17,000 $fill in the blank dfa15dfe3fc2f85_11 12,350,000 Kate: Eastern Domestic fill in the blank dfa15dfe3fc2f85_12 6,000 $fill in the blank dfa15dfe3fc2f85_13 650 $fill in the blank dfa15dfe3fc2f85_14 3,900,000 Western Domestic fill in the blank dfa15dfe3fc2f85_15 5,000 fill in the blank dfa15dfe3fc2f85_16 550 fill in the blank dfa15dfe3fc2f85_17 2,750,000 International fill in the blank dfa15dfe3fc2f85_18 1,000 fill in the blank dfa15dfe3fc2f85_19 350 fill in the blank dfa15dfe3fc2f85_20 350,000 Total fill in the blank dfa15dfe3fc2f85_21 12,000 $fill in the blank dfa15dfe3fc2f85_22 7,000,000 Total revenue from sales $fill in the blank dfa15dfe3fc2f85_23 19,350,000 Feedback Area Feedback For each product and each area, multiply the unit sales volume by the unit selling price. Question Content Area 2. Prepare a production budget for March. Royal British Furniture Company Production Budget For the Month Ending March 31 William Units Kate Units Expected units to be sold fill in the blank 158afbf4af9afa2_1 17,000 fill in the blank 158afbf4af9afa2_2 12,000 Plus desired inventory, March 31 Plus desired inventory, March 31 2,000 Plus desired inventory, March 31 900 Total fill in the blank 158afbf4af9afa2_6 19,000 fill in the blank 158afbf4af9afa2_7 12,900 Less estimated inventory, March 1 Less estimated inventory, March 1 1,500 Less estimated inventory, March 1 300 Total units to be produced fill in the blank 158afbf4af9afa2_11 17,500 fill in the blank 158afbf4af9afa2_12 12,600 Feedback Area Feedback Expected units to be sold plus desired ending inventory minus estimated beginning inventory equals units produced. Question Content Area 3. Prepare a direct materials purchases budget for March. Royal British Furniture Company Direct Materials Purchases Budget For the Month Ending March 31 Fabric (sq. yds.) Wood (lineal ft.) Direct Materials Filler (cu. ft.) Springs (units) Total Required units for production: William fill in the blank 84744afedfeefa5_1 fill in the blank 84744afedfeefa5_2 fill in the blank 84744afedfeefa5_3 fill in the blank 84744afedfeefa5_4 Kate fill in the blank 84744afedfeefa5_5 fill in the blank 84744afedfeefa5_6 fill in the blank 84744afedfeefa5_7 fill in the blank 84744afedfeefa5_8 Plus desired inventory, March 31 Plus desired inventory, March 31 Plus desired inventory, March 31 Plus desired inventory, March 31 Plus desired inventory, March 31 Total fill in the blank 84744afedfeefa5_14 fill in the blank 84744afedfeefa5_15 fill in the blank 84744afedfeefa5_16 fill in the blank 84744afedfeefa5_17 Less estimated inventory, March 1 Less estimated inventory, March 1 Less estimated inventory, March 1 Less estimated inventory, March 1 Less estimated inventory, March 1 Total units to be purchased fill in the blank 84744afedfeefa5_23 fill in the blank 84744afedfeefa5_24 fill in the blank 84744afedfeefa5_25 fill in the blank 84744afedfeefa5_26 Unit price $fill in the blank 84744afedfeefa5_27 $fill in the blank 84744afedfeefa5_28 $fill in the blank 84744afedfeefa5_29 $fill in the blank 84744afedfeefa5_30 Total direct materials to be purchased $fill in the blank 84744afedfeefa5_31 $fill in the blank 84744afedfeefa5_32 $fill in the blank 84744afedfeefa5_33 $fill in the blank 84744afedfeefa5_34 $fill in the blank 84744afedfeefa5_35 Feedback Area Feedback For each material and for both products, the production quantity plus the desired ending inventory minus the estimated beginning inventory equals the quantity of direct materials to be purchased. Multiply the quantity by the price per unit. Question Content Area 4. Prepare a direct labor cost budget for March. Royal British Furniture Company Direct Labor Cost Budget For the Month Ending March 31 Framing Department Cutting Department Upholstery Department Total Hours required for production: William fill in the blank 748f5b03ef90f86_1 fill in the blank 748f5b03ef90f86_2 fill in the blank 748f5b03ef90f86_3 Kate fill in the blank 748f5b03ef90f86_4 fill in the blank 748f5b03ef90f86_5 fill in the blank 748f5b03ef90f86_6 Total fill in the blank 748f5b03ef90f86_7 fill in the blank 748f5b03ef90f86_8 fill in the blank 748f5b03ef90f86_9 Hourly rate $fill in the blank 748f5b03ef90f86_10 $fill in the blank 748f5b03ef90f86_11 $fill in the blank 748f5b03ef90f86_12 Total direct labor cost $fill in the blank 748f5b03ef90f86_13 $fill in the blank 748f5b03ef90f86_14 $fill in the blank 748f5b03ef90f86_15 $fill in the blank 748f5b03ef90f86_16