The budget director of Peaky Blinders Furniture Company requests estimates of sales, production, and other operating data every month. Selected information concerning sales and production for March is summarized as follows:

a. Estimated sales of Thomas and Polly chairs for March by sales territory:

Product Name	Data
Thomas	8,250 units at $900 per unit
Polly	7,000 units at $700 per unit

Product Name	Data
Thomas	6,000 units at $800 per unit
Polly	6,000 units at $650 per unit

Product Name	Data
Thomas	4,500 units at $600 per unit
Polly	1,000 units at $350 per unit

b. Estimated inventories at March 1:

Department	Data
Fabric	2,750 sq. yds.
Wood	6,850 lineal ft.
Filler	1,900 cu. ft.
Springs	3,500 units

Product Name	Units Completed
Thomas	1,000 units
Polly	150 units

c. Desired inventories at March 31:

Department	Data
Fabric	4,500 sq. yds.
Wood	10,000 lineal ft.
Filler	2,500 cu. ft.
Springs	7,500 units

Product Name	Units Completed
Thomas	1,000 units
Polly	450 units

d. Direct materials used in production:

Department	Data
Fabric	2.0 sq. yds. per unit of product
Wood	8 lineal ft. per unit of product
Filler	3.8 cu. ft. per unit of product
Springs	7 units per unit of product

Department	Data
Fabric	2.5 sq. yds. per unit of product
Wood	6 lineal ft. per unit of product
Filler	3.2 cu. ft. per unit of product
Springs	5 units per unit of product

e. Anticipated purchase price for direct materials:

Department	Data
Fabric	$10.00 per sq. yd.
Wood	5.00 per lineal ft.
Filler	$1.50 per cu. ft.
Springs	3.00 per unit

f. Direct labor requirements:

Department	Data
Framing Department	2.5 hrs. at $30 per hr.
Cutting Department	1.0 hr. at $24 per hr.
Upholstery Department	3.0 hrs. at $32 per hr.

Department	Data
Framing Department	1.5 hrs. at $30 per hr.
Cutting Department	0.5 hr. at $24 per hr.
Upholstery Department	2.0 hrs. at $32 per hr.

Required:

Question Content Area

1. Prepare a sales budget for March.

Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
Thomas:
Birmingham	Birmingham	$Birmingham	$Birmingham
London	London	London	London
International	International	International	International
Total	Total		$Total
Polly:
Birmingham	Birmingham	$Birmingham	$Birmingham
London	London	London	London
International	International	International	International
Total	Total		$Total
Total revenue from sales			$Total revenue from sales

Feedback Area

Feedback

For each product and each area, multiply the unit sales volume by the unit selling price.

Question Content Area

2. Prepare a production budget for March.

Line Item Description	Thomas Units	Polly Units
Expected units to be sold	Expected units to be sold	Expected units to be sold
Less desired inventory, March 1Less desired inventory, March 31Plus desired inventory, March 1Plus desired inventory, March 31Plus desired inventory, March 31	Plus desired inventory, March 31	Plus desired inventory, March 31
Total	Total	Total
Less estimated inventory, March 1Less estimated inventory, March 31Plus estimated inventory, March 1Plus estimated inventory, March 31Less estimated inventory, March 1	Less estimated inventory, March 1	Less estimated inventory, March 1
Total units to be produced	Total units to be produced	Total units to be produced

Question Content Area

3. Prepare a direct materials purchases budget for March.

Direct Materials:	Fabric (sq. yds.)	Wood (lineal ft.)	Filler (cu. ft.)	Springs (units)	Total
Required units for production:
Thomas	Thomas	Thomas	Thomas	Thomas
Polly	Polly	Polly	Polly	Polly
Less desired inventory, March 1Less desired inventory, March 31Plus desired inventory, March 1Plus desired inventory, March 31Plus desired inventory, March 31	Plus desired inventory, March 31	Plus desired inventory, March 31	Plus desired inventory, March 31	Plus desired inventory, March 31
Total	Total	Total	Total	Total
Less estimated inventory, March 1Less estimated inventory, March 31Plus estimated inventory, March 1Plus estimated inventory, March 31Less estimated inventory, March 1	Less estimated inventory, March 1	Less estimated inventory, March 1	Less estimated inventory, March 1	Less estimated inventory, March 1
Total units to be purchased	Total units to be purchased	Total units to be purchased	Total units to be purchased	Total units to be purchased
Unit price	$Unit price	$Unit price	$Unit price	$Unit price
Total direct materials to be purchased	$Total direct materials to be purchased	$Total direct materials to be purchased	$Total direct materials to be purchased	$Total direct materials to be purchased	$Total direct materials to be purchased

Question Content Area

4. Prepare a direct labor cost budget for March.

Line Item Description	Framing Department	Cutting Department	Upholstery Department	Total
Hours required for production:
Thomas	Thomas	Thomas	Thomas
Polly	Polly	Polly	Polly
Total	Total	Total	Total
Hourly rate	$Hourly rate	$Hourly rate	$Hourly rate
Total direct labor cost	$Total direct labor cost	$Total direct labor cost	$Total direct labor cost	$Total direct labor cost