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School Days Furniture, Inc., manufactures a variety of desks, chairs, tables, and shelf units which are sold to public school systems throughout the mid-west. The controller of the company's Desk Division is currently preparing a budget for the third quarter of the year. The following sales forecast has been made by the division's sales manager. July August September 7,000 desk-and-chair sets 9,000 desk-and-chair sets 12,000 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 $40. Pine planks cost $.60 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 $21.00 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. A. Sales budget (10 points): August September July 7,000 40 Sales (in sets). Sales price per set Sales revenue... 280000 B. Production budget (in sets) (10 points): August July 7,000 September Sales 1,800 3,000 Add: Desired ending inventory. Total requirements Less: Projected beginning inventory. 8,800 2,000 Planned production 6,800 C. Raw material purchases (10 points): July August September Planned production (sets) 6,800 Raw material required per set (board feet) 10 Raw material required for production (board feet)..... 68,000 Add: Desired ending inventory of RM (board feet)...... 9,600 16,000 Total requirements 77,600 Less: Projected beginning inventory of RM (board feet) 6,800 Planned purchases of raw material (board feet).. 70,800 Cost per board foot. 0.6 Planned purchases of raw material (dollars......... 42,480 D. Direct-labor budget (10 points) August September July 6,800 1.5 Planned production (sets)..... Direct-labor hours per set...... Direct-labor hours required.. Cost per hour 10,200 21 Planned direct-labor cost. 214,200