The Gourmet Grill Company's budget manager requests estimates of sales, production, and other operating data from the various administrative units each month. Selected information on sales and production for March is summarized below:

to. Estimated March sales by sales territory:

Maine:
backyard chef	350 units at $800 per unit
kitchen master	200 units at $1,400 per unit
Vermont:
backyard chef	400 units at $825 per unit
kitchen master	240 units at $1,500 per unit
New Hampshire:
backyard chef	320 units at $850 per unit
kitchen master	200 units at $1,600 per unit

b. Estimated inventories as of March 1:

Direct materials:
grilles	320 units
Stainless steel	1,700 pounds
Burner sub-assemblies	190 units
bookshelves	350 units
Finished products:
backyard chef	30 units
kitchen master	36 units

C. Desired inventories as of March 31:

Direct materials:
grilles	300 units
Stainless steel	1500 pounds
Burner sub-assemblies	210 units
bookshelves	400 units
Finished products:
backyard chef	40 units
kitchen master	26 units

d. Direct materials used in production:

In the making of Backyard Chef:
grilles	3 units per unit of product
Stainless steel	24 pounds per unit of product
Burner sub-assemblies	2 units per product unit
bookshelves	4 units per product unit
In Master Chef Making:
grilles	6 units per unit of product
Stainless steel	42 pounds per unit of product
Burner sub-assemblies	4 units per product unit
bookshelves	5 units per unit of product

my. Advance Purchase Price for Direct Materials:

grilles	$16 per unit
Stainless steel	$8 per pound
Burner sub-assemblies	120 per unit
bookshelves	$12 per unit

F. Direct labor requirements:

Backyard Chef:
Stamping Department	0.50 a.m. at $18 per hour.
Training Department	0.60 p.m. at $16 per hour.
Assembly Department	1.0 to $15 per hour.
Kitchen Master:
Stamping Department	0.60 p.m. at $18 per hour.
Training Department	0.80 a.m. at $16 per hour.
Assembly Department	1:50 p.m. at $15 per hour.

Required:

1. Prepare a sales budget for March.

Gourmet Grill Company Sales Budget For the month ending March 31,
Product and Area		Unit Sales Volume	Unit sales Price	Total sales
Backyard Chef:
	Maine
	Vermont
	new hampshire
	Total
Kitchen Master:
	Maine
	Vermont
	new hampshire
	Total
Total sales revenue

2. Prepare a production budget for March.

Gourmet Grill Company Production Budget For the month ending March 31,
	Units
	backyard chef	kitchen master
Expected units to sell
Plus Desired Inventory, March 31,
Total
Less estimated inventory, March 1,
Total units to produce

3. Prepare a direct materials purchase budget for March.

Gourmet Grill Company Direct Materials Purchases Budget For the month ending March 31,
	grids (units)	Stainless steel (pounds)	Sub-burner Assemblies (units)	Shelves (units)	Total
Units required for production:
backyard chef
kitchen master
Plus Desired Inventory, March 31,
Total
Less estimated inventory, March 1,
Total units to buy
Unit price
Total direct materials to purchase

4. Prepare a direct labor cost budget for March.

Gourmet Grill Company Direct Labor Cost Budget For the month ending March 31,
			department print		Training Department		Assembly Department	Total
Hours required for production:
	backyard chef
	kitchen master
	Total
Hourly rate			ps		ps		ps
Total direct labor cost			ps		ps		ps	ps

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