The budget director of Royal British Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for March is summarized as follows:

a. Estimated sales of William and Kate chairs for March by sales territory:

Eastern Domestic:
	William	7,500 units at $800 per unit
	Kate	6,000 units at $650 per unit
Western Domestic:
	William	6,000 units at $700 per unit
	Kate	5,000 units at $550 per unit
International:
	William	2,500 units at $600 per unit
	Kate	1,000 units at $350 per unit

b. Estimated inventories at March 1:

Direct materials:				Finished products:
Fabric		5,500	sq. yds.	William	1,500	units
Wood		13,700	lineal ft.	Kate	300	units
Filler		3,800	cu. ft.
Springs		3,500	units

c. Desired inventories at March 31:

Direct materials:				Finished products:
Fabric		9,000	sq. yds.	William	2,000	units
Wood		20,000	lineal ft.	Kate	900	units
Filler		5,000	cu. ft.
Springs		7,500	units

d. Direct materials used in production:

In manufacture of William:
Fabric		4.0	sq. yds. per unit of product
Wood		16	lineal ft. per unit of product
Filler		3.8	cu. ft. per unit of product
Springs		14	units per unit of product
In manufacture of Kate:
Fabric		2.5	sq. yds. per unit of product
Wood		12	lineal ft. per unit of product
Filler		3.2	cu. ft. per unit of product
Springs		10	units per unit of product

e. Anticipated purchase price for direct materials:

Fabric		$9.00	per sq. yd.		Filler		$1.50	per cu. ft.
Wood		5.00	per lineal ft.		Springs		2.00	per unit

f. Direct labor requirements:

William:
Framing Department		2.5 hrs. at $15 per hr.
Cutting Department		1.0 hr. at $12 per hr.
Upholstery Department		3.0 hrs. at $16 per hr.
Kate:
Framing Department		1.5 hrs. at $15 per hr.
Cutting Department		0.5 hr. at $12 per hr.
Upholstery Department		2.0 hrs. at $16 per hr.

Required:

Question Content Area

1. Prepare sales budget for March.

Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
William:
Eastern Domestic	fill in the blank 1fa0b906cfbe02e_1	$fill in the blank 1fa0b906cfbe02e_2	$fill in the blank 1fa0b906cfbe02e_3
Western Domestic	fill in the blank 1fa0b906cfbe02e_4	fill in the blank 1fa0b906cfbe02e_5	fill in the blank 1fa0b906cfbe02e_6
International	fill in the blank 1fa0b906cfbe02e_7	fill in the blank 1fa0b906cfbe02e_8	fill in the blank 1fa0b906cfbe02e_9
Total	fill in the blank 1fa0b906cfbe02e_10		$fill in the blank 1fa0b906cfbe02e_11
Kate:
Eastern Domestic	fill in the blank 1fa0b906cfbe02e_12	$fill in the blank 1fa0b906cfbe02e_13	$fill in the blank 1fa0b906cfbe02e_14
Western Domestic	fill in the blank 1fa0b906cfbe02e_15	fill in the blank 1fa0b906cfbe02e_16	fill in the blank 1fa0b906cfbe02e_17
International	fill in the blank 1fa0b906cfbe02e_18	fill in the blank 1fa0b906cfbe02e_19	fill in the blank 1fa0b906cfbe02e_20
Total	fill in the blank 1fa0b906cfbe02e_21		$fill in the blank 1fa0b906cfbe02e_22
Total revenue from sales			$fill in the blank 1fa0b906cfbe02e_23

Question Content Area

2. Prepare production budget for March.

	William Units	Kate Units
Expected units to be sold	fill in the blank 669881fe3f89fba_1	fill in the blank 669881fe3f89fba_2
Less desired inventory, March 1Less desired inventory, March 31Plus desired inventory, March 1Plus desired inventory, March 31	- Select -	- Select -
Total	fill in the blank 669881fe3f89fba_6	fill in the blank 669881fe3f89fba_7
Less estimated inventory, March 1Less estimated inventory, March 31Plus estimated inventory, March 1Plus estimated inventory, March 31	- Select -	- Select -
Total units to be produced	fill in the blank 669881fe3f89fba_11	fill in the blank 669881fe3f89fba_12

Question Content Area

3. Prepare direct materials purchases budget for March.

Direct Materials:	Fabric (sq. yds.)	Wood (lineal ft.)	Filler (cu. ft.)	Springs (units)	Total
Required units for production:
William	fill in the blank 92912c034facf97_1	fill in the blank 92912c034facf97_2	fill in the blank 92912c034facf97_3	fill in the blank 92912c034facf97_4
Kate	fill in the blank 92912c034facf97_5	fill in the blank 92912c034facf97_6	fill in the blank 92912c034facf97_7	fill in the blank 92912c034facf97_8
Less desired inventory, March 1Less desired inventory, March 31Plus desired inventory, March 1Plus desired inventory, March 31	- Select -	- Select -	- Select -	- Select -
Total	fill in the blank 92912c034facf97_14	fill in the blank 92912c034facf97_15	fill in the blank 92912c034facf97_16	fill in the blank 92912c034facf97_17
Less estimated inventory, March 1Less estimated inventory, March 31Plus estimated inventory, March 1Plus estimated inventory, March 31	- Select -	- Select -	- Select -	- Select -
Total units to be purchased	fill in the blank 92912c034facf97_23	fill in the blank 92912c034facf97_24	fill in the blank 92912c034facf97_25	fill in the blank 92912c034facf97_26
Unit price	$fill in the blank 92912c034facf97_27	$fill in the blank 92912c034facf97_28	$fill in the blank 92912c034facf97_29	$fill in the blank 92912c034facf97_30
Total direct materials to be purchased	$fill in the blank 92912c034facf97_31	$fill in the blank 92912c034facf97_32	$fill in the blank 92912c034facf97_33	$fill in the blank 92912c034facf97_34	$fill in the blank 92912c034facf97_35

Question Content Area

4. Prepare direct labor cost budget for March.

	Framing Department	Cutting Department	Upholstery Department	Total
Hours required for production:
William	fill in the blank c59e6a057041075_1	fill in the blank c59e6a057041075_2	fill in the blank c59e6a057041075_3
Kate	fill in the blank c59e6a057041075_4	fill in the blank c59e6a057041075_5	fill in the blank c59e6a057041075_6
Total	fill in the blank c59e6a057041075_7	fill in the blank c59e6a057041075_8	fill in the blank c59e6a057041075_9
Hourly rate	$fill in the blank c59e6a057041075_10	$fill in the blank c59e6a057041075_11	$fill in the blank c59e6a057041075_12
Total direct labor cost	$fill in the blank c59e6a057041075_13	$fill in the blank c59e6a057041075_14	$fill in the blank c59e6a057041075_15	$fill in the blank c59e6a057041075_16