Question
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
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 | 8,750 units at $800 per unit | |
Kate | 6,000 units at $650 per unit | |
Western Domestic: | ||
William | 6,000 units at $700 per unit | |
Kate | 7,000 units at $550 per unit | |
International: | ||
William | 3,750 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. |
1. Prepare a sales budget for March.
Product and Area | Unit Sales Volume | Unit Selling Price | Total Sales |
William: | |||
Eastern Domestic | fill in the blank | $fill in the blank | $fill in the blank |
Western Domestic | fill in the blank 164c1dfb806404e_4 | fill in the blank 164c1dfb806404e_5 | fill in the blank 164c1dfb806404e_6 |
International | fill in the blank 164c1dfb806404e_7 | fill in the blank 164c1dfb806404e_8 | fill in the blank 164c1dfb806404e_9 |
Total | fill in the blank 164c1dfb806404e_10 | $fill in the blank 164c1dfb806404e_11 | |
Kate: | |||
Eastern Domestic | fill in the blank 164c1dfb806404e_12 | $fill in the blank 164c1dfb806404e_13 | $fill in the blank 164c1dfb806404e_14 |
Western Domestic | fill in the blank 164c1dfb806404e_15 | fill in the blank 164c1dfb806404e_16 | fill in the blank 164c1dfb806404e_17 |
International | fill in the blank 164c1dfb806404e_18 | fill in the blank 164c1dfb806404e_19 | fill in the blank 164c1dfb806404e_20 |
Total | fill in the blank 164c1dfb806404e_21 | $fill in the blank 164c1dfb806404e_22 | |
Total revenue from sales | $fill in the blank 164c1dfb806404e_23 |
2. Prepare a production budget for March.
William Units | Kate Units | |
Expected units to be sold | fill in the blank 6f45a702f05c068_1 | fill in the blank 6f45a702f05c068_2 |
Less desired inventory, March 1Less desired inventory, March 31Plus desired inventory, March 1Plus desired inventory, March 31Plus desired inventory, March 31 | Plus desired inventory, March 31 | Plus desired inventory, March 31 |
Total | fill in the blank 6f45a702f05c068_6 | fill in the blank 6f45a702f05c068_7 |
Less estimated inventory, March 1Less estimated inventory, March 31Plus estimated inventory, March 1Plus estimated inventory, March 31Less estimated inventory, March 1 | Less estimated inventory, March 1 | Less estimated inventory, March 1 |
Total units to be produced | fill in the blank 6f45a702f05c068_11 | fill in the blank |
3. Prepare a direct materials purchases budget for March.
Fabric (sq. yds.) | Wood (lineal ft.) | Direct Materials Filler (cu. ft.) | Springs (units) | Total | |
Required units for production: | |||||
William | fill in the blank d3faf700605d016_1 | fill in the blank d3faf700605d016_2 | fill in the blank d3faf700605d016_3 | fill in the blank d3faf700605d016_4 | |
Kate | fill in the blank d3faf700605d016_5 | fill in the blank d3faf700605d016_6 | fill in the blank d3faf700605d016_7 | fill in the blank d3faf700605d016_8 | |
Less desired inventory, March 1Less desired inventory, March 31Plus desired inventory, March 1Plus desired inventory, March 31Plus 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 d3faf700605d016_14 | fill in the blank d3faf700605d016_15 | fill in the blank d3faf700605d016_16 | fill in the blank d3faf700605d016_17 | |
Less estimated inventory, March 1Less estimated inventory, March 31Plus estimated inventory, March 1Plus estimated inventory, March 31Less 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 d3faf700605d016_23 | fill in the blank d3faf700605d016_24 | fill in the blank d3faf700605d016_25 | fill in the blank d3faf700605d016_26 | |
Unit price | $fill in the blank d3faf700605d016_27 | $fill in the blank d3faf700605d016_28 | $fill in the blank d3faf700605d016_29 | $fill in the blank d3faf700605d016_30 | |
Total direct materials to be purchased | $fill in the blank d3faf700605d016_31 | $fill in the blank d3faf700605d016_32 | $fill in the blank d3faf700605d016_33 | $fill in the blank d3faf700605d016_34 | $fill in the blank d3faf700605d016_35 |
4. Prepare a direct labor cost budget for March.
Framing Department | Cutting Department | Upholstery Department | Total | |
Hours required for production: | ||||
William | fill in the blank 39874efb607206d_1 | fill in the blank 39874efb607206d_2 | fill in the blank 39874efb607206d_3 | |
Kate | fill in the blank 39874efb607206d_4 | fill in the blank 39874efb607206d_5 | fill in the blank 39874efb607206d_6 | |
Total | fill in the blank 39874efb607206d_7 | fill in the blank 39874efb607206d_8 | fill in the blank 39874efb607206d_9 | |
Hourly rate | $fill in the blank 39874efb607206d_10 | $fill in the blank 39874efb607206d_11 | $fill in the blank 39874efb607206d_12 | |
Total direct labor cost | $fill in the blank 39874efb607206d_13 | $fill in the blank 39874efb607206d_14 | $fill in the blank 39874efb607206d_15 | $fill in the blank 39874efb607206d_16 |
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