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 $0.50 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.

• Required 1
• Required 2
• Required 3
• Required 4

Sales budget:

	April	May	June
Sales (in sets)	10,000
Sales price per set	$50
Sales revenue	$500,000	$0	$0

Production budget (in sets):

	April	May	June
Sales	10,000
Add: Desired ending inventory	2,400		3,000
Total requirements	12,400	0	3,000
Less: Projected beginning inventory	2,000
Planned production	10,400	0	3,000

Raw-material purchases: (Round "Cost per board foot" to 2 decimal places.)

	April	May	June
Planned production (sets)	10,400
Raw material required per set (board feet)	10
Raw material required for production (board feet)	104,000	0	0
Add: Desired ending inventory of raw material, in board feet (10% of next months requirement)	12,600		16,000
Total requirements	116,600	0	16,000
Less: Projected beginning inventory of raw material, in board feet (10% of current months requirement)	10,400
Planned purchases of raw material (board feet)	106,200	0	16,000
Cost per board foot	$0.50
Planned purchases of raw material (dollars)	$53,100	$0	$0

Direct-labor budget: (Round "Direct labor hours per set" to 1 decimal place.)

	April	May	June
Planned production (sets)	10,400
Direct-labor hours per set	1.5
Direct-labor hours required	15,600	0	0
Cost per hour	$20
Planned direct-labor cost	$312,000	$0	$0