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

The budget director of Peaky Blinders Furniture Company requests estimates of sales, production, and other operating data every month. Selected information concerning sales and production for March is summarized as follows:

a$.$ Estimated sales of Thomas and Polly chairs for March by sales territory:

Birmingham:

Product Name Data

Thomas $8,250$ units at $$900$ per unit

Polly $7,000$ units at $$700$ per unit

London:

Product Name Data

Thomas $6,000$ units at $$800$ per unit

Polly $6,000$ units at $$650$ per unit

International:

Product Name Data

Thomas $2,750$ units at $$600$ per unit

Polly $1,000$ units at $$350$ per unit

b$.$ Estimated inventories at March $1$:

Direct materials:

Department Data

Fabric $2,750$ sq$.$ yds$.$

Wood $6,850$ lineal ft$.$

Filler $1,900$ cu$.$ ft$.$

Springs $3,500$ units

Finished products:

Product Name Units Completed

Thomas $1,000$ units

Polly $150$ units

c$.$ Desired inventories at March $31$:

Direct materials:

Department Data

Fabric $4,500$ sq$.$ yds$.$

Wood $10,000$ lineal ft$.$

Filler $2,500$ cu$.$ ft$.$

Springs $7,500$ units

Finished products:

Product Name Units Completed

Thomas $1,000$ units

Polly $450$ units

d$.$ Direct materials used in production:

In manufacture of Thomas:

Department Data

Fabric $2\mathrm{.}0$ sq$.$ yds$.$ per unit of product

Wood $8$ lineal ft$.$ per unit of product

Filler $3\mathrm{.}8$ cu$.$ ft$.$ per unit of product

Springs $7$ units per unit of product

In manufacture of Polly:

Department Data

Fabric $2\mathrm{.}5$ sq$.$ yds$.$ per unit of product

Wood $6$ lineal ft$.$ per unit of product

Filler $3\mathrm{.}2$ cu$.$ ft$.$ per unit of product

Springs $5$ units per unit of product

e$.$ Anticipated purchase price for direct materials:

Department Data

Fabric $$10\mathrm{.}00$ per sq$.$ yd$.$

Wood $5\mathrm{.}00$ per lineal ft$.$

Filler $$1\mathrm{.}50$ per cu$.$ ft$.$

Springs $3\mathrm{.}00$ per unit

f$.$ Direct labor requirements:

Thomas:

Department Data

Framing Department $2\mathrm{.}5$ hrs$.$ at $$30$ per hr$.$

Cutting Department $1\mathrm{.}0$ hr$.$ at $$24$ per hr$.$

Upholstery Department $3\mathrm{.}0$ hrs$.$ at $$32$ per hr$.$

Polly:

Department Data

Framing Department $1\mathrm{.}5$ hrs$.$ at $$30$ per hr$.$

Cutting Department $0\mathrm{.}5$ hr$.$ at $$24$ per hr$.$

Upholstery Department $2\mathrm{.}0$ hrs$.$ at $$32$ per hr$.$

Required:

Question Content Area

$1.$ Prepare a sales budget for March.

Peaky Blinders Furniture Company

Sales Budget

For the Month Ending March $31$

Product and Area Unit Sales Volume Unit Selling Price Total Sales

Thomas:

Birmingham Birmingham

$Birmingham

$Birmingham

London London

London

London

International International

International

International

Total Total

$Total

Polly:

Birmingham Birmingham

$Birmingham

$Birmingham

London London

London

London

International International

International

International

Total Total

$Total

Total revenue from sales $Total revenue from sales

Question Content Area

$2.$ Prepare a production budget for March.

Peaky Blinders Furniture Company

Production Budget

For the Month Ending March $31$

Line Item Description Thomas Units Polly Units

Expected units to be sold Expected units to be sold

Expected units to be sold

$-$ Select $-$

$-$ Select $-$

Total Total

Total

$-$ Select $-$

$-$ Select $-$

Total units to be produced Total units to be produced

Total units to be produced

Question Content Area

$3.$ Prepare a direct materials purchases budget for March.

Peaky Blinders Furniture Company

Direct Materials Purchases Budget

For the Month Ending March $31$

Direct Materials: Fabric $($sq$.$ yds$.)$ Wood $($lineal ft$.)$ Filler $($cu$.$ ft$.)$ Springs $($units$)$ Total

Required units for production:

Thomas Thomas

Thomas

Thomas

Thomas

Polly Polly

Polly

Polly

Polly

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Total Total

Total

Total

Total

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Total units to be purchased Total units to be purchased

Total units to be purchased

Total units to be purchased

Total units to be purchased

Unit price $Unit price

$Unit price

$Unit price

$Unit price

Total direct materials to be purchased $Total direct materials to be purchased

$Total direct materials to be purchased

$Total direct materials to be purchased

$Total direct materials to be purchased

$Total direct materials to be purchased

Question Content Area

$4.$ Prepare a direct labor cost budget for March.

Peaky Blinders Furniture Company

Direct Labor Cost Budget

For the Month Ending March $31$

Line Item Description Framing Department Cutting Department Upholstery Department Total

Hours required for production:

Thomas Thomas

Thomas

Thomas

Polly Polly

Polly

Polly

Total Total

Total

Total

Hourly rate $Hourly rate

$Hourly rate

$Hourly rate

Total direct labor cost $Total direct labor cost

$Total direct labor cost

$Total direct labor cost

$Total direct labor cost