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.

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Sales budget: May June April 10,000 Sales (in sets) Sales price per set $ 50 $ 500,000 Sales revenue 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): May June Sales 3,000 Add: Desired ending inventory Total requirements Less: Projected beginning inventory Planned production April 10,000 2,400 12,400 2,000 10,400 Required 1 Required 2 Required 3 Required 4 Raw-material purchases: (Round "Cost per board foot" to 2 decimal places.) May June April 10,400 10 104,000 12,600 16,000 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 Planned purchases of raw material (dollars) 116,600 10,400 106,200 0.50 $ $ 53,100 Required 2 Required 4 Required 1 Required 2 Required 3 Required 4 Direct-labor budget: (Round "Direct labor hours per set" to 1 decimal place.) May June April 10,400 Planned production (sets) Direct-labor hours per set Direct-labor hours required 1.5 15,600 Cost per hour $ 20 $ 312,000 Planned direct-labor cost