Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets 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 Wood Filler Springs Finished products: King Prince Direct materials Fabric Wood Filler c. Desired inventories at February 28: Springs Finished products: King Prince In manufacture of King: 420 sq yds 580 linear ft. 250 cu. ft. 660 units Fabric Wood Filler Springs In manufacture of Prince: Fabric Wood Filer Sorinas 90 units 25 units d. Direct materials used in production: Check My Work 390 sq yds trong l 300 cu. ft. 540 units 80 units 35 units 60 sq yds per unit of product. 38 linear ft. per unit of product 4.2 cu. ft. per unit of product. 16 units per unit of product 4.0 sq yds per unit of product 26 linear ft. per unit of product 3.4 cu. ft. per unit of product 12 units per unit of product Next >
Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets 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 Wood Filler Springs Finished products: King Prince Direct materials Fabric Wood Filler c. Desired inventories at February 28: Springs Finished products: King Prince In manufacture of King: 420 sq yds 580 linear ft. 250 cu. ft. 660 units Fabric Wood Filler Springs In manufacture of Prince: Fabric Wood Filer Sorinas 90 units 25 units d. Direct materials used in production: Check My Work 390 sq yds trong l 300 cu. ft. 540 units 80 units 35 units 60 sq yds per unit of product. 38 linear ft. per unit of product 4.2 cu. ft. per unit of product. 16 units per unit of product 4.0 sq yds per unit of product 26 linear ft. per unit of product 3.4 cu. ft. per unit of product 12 units per unit of product Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Problem Set: Module 5
Sales, Production, Direct Materials Purchases, and Direct Labor
Cost Budgets
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:
Northern Domestic:
King 610 units at $780 per unit
Prince 750 units at $550 per unit
Southern Domestic
a. Estimated sales of King and Prince chairs for February by
sales territory:
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
Wood
Filler
Springs
Finished products:
engagenow.com
King
Prince
Direct materials:
Fabric
Wood
Filler
Springs
Finished products:
King
Prince
c. Desired inventories at February 28:
In manufacture of King
Fabric
Wood
Filler
Springs
In manufacture of Prince:
Fabric
Wood
Filler
Springs
420 sq yds.
580 linear ft.
250 cu. ft.
660 units
Check My Work
90 units
25 units
d. Direct materials used in production:
390 sq. yds.
650 linear ft.
300 cu.ft.
540 units
80 units
35 units
+
6.0 sq. yds. per unit of product
38 linear ft. per unit of product
4.2 cu. ft. per unit of product
16 units per unit of product
42
4.0 sq. yds. per unit of product
26 linear ft. per unit of product
3.4 cu. ft. per unit of product
12 units per unit of product
Next>
Transcribed Image Text:Fabric
Wood
Problem Set: Module 5
e. Anticipated purchase price for direct materials:
Filler
Springs
King
Framing Department
Cutting Department
Upholstery Department
Prince:
Framing Department
Cutting Department
Upholstery Department
f. Direct labor requirements:
King
Northern Domestic
Southern Domestic
International
Total
Prince
engagenow.com
Northern Domestic
Southern Domestic
International
Required:
1. Prepare a sales budget for February.
Total
$12.00 per sq yd
Total revenue from sales
7.00 per linear ft.
$3.00 per cu. ft.
4.50 per unit
1.2 hrs. at $12 per hr.
0.5hr. at $14 per hr
08 hr at $15 per hr.
Product and Area
1.0 hr. at $12 per hr.
0.4 hr. at $14 per hr.
0.6 hr. at $15 per hr.
Royal Furniture Company
Sales Budget
For the Month Ending February 28
Royal Furniture Company
Production Budget
For the Month Ending February 28
King
Unit Sales
Volume
Units
+
Prince
Unit Selling
Price
2. Prepare a production budget for February. For those boxes
in which you must enter subtracted or negative numbers use a
minus sign.
11
40
Total Sales
S
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