The budget director of Royal 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 February is summarized as follows:

a. Estimated sales of King and Prince chairs for February by sales territory:

Northern Domestic:
King	610 units at $780 per unit
Prince	750 units at $550 per unit
Southern Domestic:
King	340 units at $780 per unit
Prince	440 units at $550 per unit
International:
King	360 units at $850 per unit
Prince	290 units at $600 per unit

b. Estimated inventories at February 1:

Direct materials:
Fabric	420 sq. yds.
Wood	580 linear ft.
Filler	250 cu. ft.
Springs	660 units
Finished products:
King	90 units
Prince	25 units

c. Desired inventories at February 28:

Direct materials:
Fabric	390 sq. yds.
Wood	650 linear ft.
Filler	300 cu. ft.
Springs	540 units
Finished products:
King	80 units
Prince	35 units

d. Direct materials used in production:

In manufacture of King:
Fabric	6.0 sq. yds. per unit of product
Wood	38 linear ft. per unit of product
Filler	4.2 cu. ft. per unit of product
Springs	16 units per unit of product
In manufacture of Prince:
Fabric	4.0 sq. yds. per unit of product
Wood	26 linear ft. per unit of product
Filler	3.4 cu. ft. per unit of product
Springs	12 units per unit of product

e. Anticipated purchase price for direct materials:

Fabric	$12.00	per sq. yd.
Wood	7.00	per linear ft.
Filler	$3.00	per cu. ft.
Springs	4.50	per unit

f. Direct labor requirements:

King:
Framing Department	1.2 hrs. at $12 per hr.
Cutting Department	0.5 hr. at $14 per hr.
Upholstery Department	0.8 hr. at $15 per hr.
Prince:
Framing Department	1.0 hr. at $12 per hr.
Cutting Department	0.4 hr. at $14 per hr.
Upholstery Department	0.6 hr. at $15 per hr.

Required:

1. Prepare a sales budget for February.

Royal Furniture Company Sales Budget For the Month Ending February 28
Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
King:
	Northern Domestic	fill in the blank 1	$fill in the blank 2	$fill in the blank 3
	Southern Domestic	fill in the blank 4	fill in the blank 5	fill in the blank 6
	International	fill in the blank 7	fill in the blank 8	fill in the blank 9
	Total	fill in the blank 10		$fill in the blank 11
Prince:
	Northern Domestic	fill in the blank 12	$fill in the blank 13	$fill in the blank 14
	Southern Domestic	fill in the blank 15	fill in the blank 16	fill in the blank 17
	International	fill in the blank 18	fill in the blank 19	fill in the blank 20
	Total	fill in the blank 21		$fill in the blank 22
Total revenue from sales			$fill in the blank 23

2. Prepare a production budget for February. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Royal Furniture Company Production Budget For the Month Ending February 28
	Units
	King	Prince
Expected units to be soldDesired inventory, February 28Total units availableEstimated inventory, February 1Total units to be produced	fill in the blank 25	fill in the blank 26
Expected units to be soldDesired inventory, February 28Total units availableEstimated inventory, February 1Total units to be produced	fill in the blank 28	fill in the blank 29
Expected units to be soldDesired inventory, February 28Total units availableEstimated inventory, February 1Total units to be produced	fill in the blank 31	fill in the blank 32
Expected units to be soldDesired inventory, February 28Total units availableEstimated inventory, February 1Total units to be produced	fill in the blank 34	fill in the blank 35
Expected units to be soldDesired inventory, February 28Total units availableEstimated inventory, February 1Total units to be produced	fill in the blank 37	fill in the blank 38

3. Prepare a direct materials purchases budget for February. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Royal Furniture Company Direct Materials Purchases Budget For the Month Ending February 28
	Direct Materials
		Fabric (sq. yds.)		Wood (linear ft.)		Filler (cu. ft.)		Springs (units)	Total
Required units for production:
King
Prince
Desired inventory, February 28
Total
Estimated inventory, February 1
Total units to be purchased
Unit price
Total direct materials to be purchased

4. Prepare a direct labor cost budget for February.

Royal Furniture Company Direct Labor Cost Budget For the Month Ending February 28
		Framing Department		Cutting Department		Upholstery Department	Total
Hours required for production:
	King
	Prince
	Total
Hourly rate		$		$		$f
Total direct labor cost		$		$		$	$

I am stuck on part 3 of the budget. The text online cuts off and I cannot see the formula. Could you please walk me through this so that I understand?

Thanks