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 company's Desk Division is currently preparing a budget for the second quarter of the year. The following sales forecast has been made by the division's sales manager. April May June 10,500 desk-and-chair sets 12,500 desk-and-chair sets 15,500 desk-and-chair sets Each desk-and-chair set requires 12 board feet of pine planks and 1.4 hours of direct labor. Each set sells for $55. Pine planks cost $.50 per board foot, and the division ends each month with enough wood to cover 10 percent of the next month's production requirements. The division incurs a cost of $22 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 month's sales. Required: Complete the following budget schedules. 1. Sales budget. 2. Production budget (in sets). 3. Raw-material purchases. 4. Direct-labor budget. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Sales budget: Sales (in sets) Sales price per set Sales revenue April 10,500 55 577,500 May 12,500 55 687,500 June 15,500 55 852,500 $ $ $ $ $ $ Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Production budget (in sets): April May June Sales Add: Desired ending inventory Total requirements Less: Projected beginning inventory Planned production 10,500 2,500 13,000 2,100 10,900 3,100 3,100 0 3,100 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Raw-material purchases: (Round "Cost per board foot" to 2 decimal places.) May June April 10,900 12 130,800 0 0 15,720 19,000 Planned production (sets) Raw material required per set (board feet) Raw material required for production (board feet) Add: Desired ending inventory of raw material, in board feet (10% of next month's requirement) Total requirements Less: Projected beginning inventory of raw material, in board feet (10% of current month's requirement) Planned purchases of raw material (board feet) Cost per board foot 146,520 19,000 13,080 133,440 0.50 0 19,000 Planned purchases of raw material (dollars) $ 66,720 $ 0 $ Required 2 Required 4 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Direct-labor budget: (Do not round intermediate values. Round "Direct labor hours per set" to 1 decimal place.) May June Planned production (sets) Direct-labor hours per set Direct-labor hours required Cost per hour Planned direct-labor cost April 10,900 1.4 15,260 22 335,720 0 0 $ $ $ 0 $
