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 8,000 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 4,500 units at $600 per unit Kate 1,000 units at $350 per unit b. Estimated Inventories at March 1: Finished products: Direct materials: Fabric 5,500 sq yds William 1,500 units b. Estimated Inventories at March 1: Direct materials: Finished products: Fabric 1,500 units Wood 5,500 sq yds. 13,700 lineal ft. 3,800 cu. ft. Kate 300 units Filler Springs 3,500 units c. Desired Inventories at March 31: Direct materials: Finished products: Fabric William 9,000 sq yds. 20,000 lineal ft. 2,000 units 900 units Wood Kate Filler 5,000 cu. ft. Springs 7,500 units d. Direct materials used in production: In manufacture of William: d. Direct materials used in production: In manufacture of William: Fabric Wood 4.0 sq. yds. per unit of product 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: 2.5 sq. yds. per unit of product Fabric Wood 12 lineal ft. per unit of product Filler Springs 3.2 cu. ft. per unit of product 10 units per unit of product e. Anticipated purchase price for direct materials: Fabric Filler $1.50 per cu. ft. $9.00 per sq. yd. 5.00 per lineal ft. Wood Springs 2.00 per unit f. Direct labor requirements: e. Anticipated purchase price for direct materials: Fabric Wood $9.00 per sq. yd. 5.00 per lineal ft. $1.50 per cu. ft. Filler Springs 2.00 per unit f. Direct labor requirements: William: 2.5 hrs. at $15 per hr Framing Department Cutting Department Upholstery Department 1.0 hr. at $12 per hr. 3.0 hrs. at $16 per hr. Kate: Framing Department 1.5 hrs. at $15 per hr. 0.5 hr. at $12 per hr. Cutting Department Upholstery Department 2.0 hrs, at $16 per hr. For each product and each area, multiply the unit sales volume by the unit selling price. 2. Prepare a production budget for March. Royal British Furniture Company Production Budget For the Month Ending March 31 William Units Expected units to be sold 18,500 Plus desired inventory, March 31 13,300,000 x Kate Units 14,000 L Total Less estimated inventory, March 1 E AJ Total units to be produced Feedback Check My Work Expected units to be sold plus desired ending inventory minus estimated beginning inventory equals unit 3. Prepare a direct materials purchases budget for March. Expected units to be sold plus desired ending inventory minus estimated beginning inventory equals units produced 3. Prepare a direct materials purchases budget for March. Royal British Furniture Company Direct Materials Purchases Budget For the Month Ending March 31 Fabric (5q, yds.) Wood (lineal ft.) Filler (cu.ft.) Springs (units) Total Required units for production: William Kate Plus desired inventory, March 31 Total Less estimated inventory, March 1 Total units to be purchased Unit price Total direct materials to be purchased 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 Hours required for production: William Total Kate L Total Hourly rate Total direct labor cost Foodhark