Question
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.
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Sales budget.
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Production budget (in sets).
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Raw-material purchases.
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Direct-labor budget.
Complete this question by entering your answers in the tabs below.
- Required 1
- Required 2
- Required 3
- Required 4
Sales budget:
|
Production budget (in sets):
|
Raw-material purchases: (Round "Cost per board foot" to 2 decimal places.)
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Direct-labor budget: (Round "Direct labor hours per set" to 1 decimal place.)
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