Sales, Production Direct Materials Purchases, and rect Labor Cost Budget The budget director of Gourmet Grill Company requests estimates of sales production, and other operating data from the various administrative everyth Selected women concerning and production for July is tummarised as follows: Estimated whes for Suy by sales territory Maine Backyard Cher 310 700 Ft Master Chef 150 units at $1,200 per unit Vermont Backyard Cher 240 units at 750 per Master Chat 110 units at $1,300 per unit New Hampshire Backyard Chef 360 units at 5750 per unit Master Chef 100 units at $1.400 per unit b. Estimated inventore at du Direct materials Grates 290 1.500 lbs 170 units 30 units Stainless steel Burner subansamblis Shelves Finished products Backyard Chel Master Chef 30 units 32 units c. Desired Inventories at July 31: Direct materials: Grates 340 units Stainless steel 1,800 lbs. 155 units 315 units 40 units Burner subassemblies Shelves Finished products: Backyard Chef Master Chef d. Direct materials used in production: In manufacture of Backyard Chef: Grates 22 units Stainless steel 3 units per unit of product 24 lbs. per unit of product 2 units per unit of product 4 units per unit of product Burner subassemblies Shelves In manufacture of Master Chef: Grates Stainless steel 6 units per unit of product 42 lbs. per unit of product 4 units per unit of product 5 units per unit of product Burner subassemblies Shelves product e. Anticipated purchase price for direct materials: Grates $15 per unit Stainless steel $6 per lb. Burner subassemblies $110 per unit Shelves $10 per unit f. Direct labor requirements: Backyard Chef: Stamping Department 0.50 hr. at $17 per hr Forming Department 0.60 hr. at $15 per hr. Assembly Department 1.00 hr. at $14 per hr. Master Chef: Stamping Department 0.60 hr. at $17 per hr. Forming Department 0.80 hr. at $15 per hr. Assembly Department 1.50 hrs. at $14 per hr. 1. Prepare a sales budget for July Gourmet Grill Company Sales Budget For the Month Ending July 31 Unit Sales Volume Product and Area Unit Selling Price Total Sales Backyard Chef: Maine 310 700 217,000 Vermont 240 750 180,000 New Hampshire 360 750 270,000 Total 910 667,000 Master Chef: Maine 150 1,200 180,000 Vermont 110 1,300 143,000 New Hampshire 180 1,400 252,000 Total 440 575,000 Total revenue from sales 1,242,000 2. Prepare a production budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Gourmet Grill Company Production Budget For the Month Ending July 31 Units Backyard Chef Master Chef Expected units to be sold Desired inventory, July 31 Total units available Estimated inventory, July 1 Total units to be produced 3. Prepare a direct materials purchases budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign Gourmet Grill Company Direct Materials Purchases Budget For the Month Ending July 31 Grates Stainless Steel (units) (lbs.) Burner Sub- assemblies (units) Shelves (units) Total Required units for production: Backyard Chef Master Chef Desired Inventory, July 31 Total Estimated inventory, July 1 Total units to be purchased Unit price Total direct materials to be purchased
