• Serra Furniture is an Elite desk manufacture. It manufactures two products. Executive desks – Oak desks Chairman desks – Red Oak desks The budgeted direct cost inputs for each production in 2008 are as follows: Particulars Executive line Chairman line Direct material: Oak top 16Sqf ----- Red Oak top --- 25Sqf Oak legs 4 legs ---- Red Oak legs -- 4 legs Direct Labor: 3 Hr 5 Hr Unit data pertaining to the direct materials for March 2008 as follows: Actual beginning direct material’s inventory (2008) Particulars Executive line Chairman Line Oak top 320 Sqf ----- Red Oak top --- 150 Sqf Oak legs 100 legs ---- Red Oak legs -- 40 legs Target ending direct material inventory at March 31, 2008. Particulars Executive line Chairman Line Oak top 192Sqf ----- Red Oak top --- 200Sqf Oak legs 80 legs ---- Red Oak legs -- 44 legs Unit cost data for direct cost inputs pertaining to February 2008 and March 1998 are: Particulars February 1998 March 1998 Oak top (per sqf) Bir.18.00 Bir.20.00 Red Oak top (per sqf) Bir.23.00 Bir.25.00 Oak top (per leg) Bir.11.00 Bir.12.00 Red oak legs (per leg) Bir.17.00 Bir.18.00 Manufacturing labor (per Hr) Bir.30.00 Bir.30.00 Manufacturing overhead (both variable and fixed) is allocated to each desk on the basis of budgetary direct manufacturing labor hours per desk. The budgeting variable manufacturing overhead rate for March 1998 is Bir.35.00 per Direct manufacturing labor Hour. The budgeted fixed manufacturing overhead for March 1998 is Bir.42, 500. Both variable and fixed manufacturing overhead cost is allocated to each unit of finished goods. Data relating to finished goods inventory for March 1998 are Particulars Executive line Chairman Line Beginning inventory 20 units 5 units Beginning inventory Bir.10, 480 Bir.4850 Target ending inventory 30 units’ 15 units Budgeted sale for March 1998 are 740 units of the executive line and 390 units of the chairman line. The budgeted selling prices per unit in March 1998 are Bir.1, 020 for an executive line desk and Bir.1600 for a chairman line desk. Take the following assumptions in your answer: Works in Process inventories are negligible and ignored. Direct material inventory and finished goods inventory are determined using the FIFO method. Unit costs of direct material purchased and finished goods are constant in March 1998. Required: Prepare the following budget for March, 2008 Revenue budget production budget in units Direct material usage budget and direct material purchase budget Direct manufacturing labor budget Ending inventory budget Cost of goods sold budget