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Scholastic Furniture, Inc. manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school systems throughout the Midwest. The controller

Scholastic Furniture, Inc. manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school systems throughout the Midwest. The controller of the companys Desk Division is currently preparing a budget for the second quarter of the year. The following sales forecast has been made by the divisions sales manager.

April 10,000 desk-and-chair sets
May 12,000 desk-and-chair sets
June 15,000 desk-and-chair sets

Each desk-and-chair set requires 10 board feet of pine planks and 1.5 hours of direct labor. Each set sells for $50. Pine planks cost $.50 per board foot, and the division ends each month with enough wood to cover 10 percent of the next months production requirements. The division incurs a cost of $20 per hour for direct-labor wages and fringe benefits. The division ends each month with enough finished-goods inventory to cover 20 percent of the next months sales.

Required:

Complete the following budget schedules.

  1. Sales budget.

  2. Production budget (in sets).

  3. Raw-material purchases.

  4. Direct-labor budget.

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