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:   Estimated sales of Thomas and Polly chairs for March by sales territory: Birmingham Data Thomas 8,000 units at $900 per unit Polly 7,000 units at $700 per unit   London Data Thomas 6,000 units at $800 per unit Polly 5,500 units at $650 per unit   International Data Thomas 3,000 units at $600 per unit Polly 1,000 units at $350 per unit Estimated inventories at March 1: Direct Materials Data     Fabric 2,750 sq. yds.       Wood 6,850 lineal ft.     Filler 1,900 cu. ft.         Springs 3,500 units        Finished Products Units Completed     Thomas 750 units     Polly 150 units Desired inventories at March 31: Direct Materials Data     Fabric 4,500 sq. yds.       Wood 10,000 lineal ft.     Filler 2,500 cu. ft.         Springs 7,500 units        Finished Products Units Completed     Thomas 1,000 units     Polly 450 units Direct materials used in production: In manufacture of Thomas 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         In manufacture of Polly 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      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        Direct labor requirements: Thomas 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.   Polly 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: Prepare a sales budget for March. Prepare a production budget for March. Prepare a direct materials purchases budget for March. Prepare a direct labor cost budget for March.   Question Content Area    Make 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   Question Content Area    Make 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 31 - Select - - Select - Total Total Total Less estimated inventory, March 1Less estimated inventory, March 31Plus estimated inventory, March 1Plus estimated inventory, March 31 - Select - - Select - Total units to be produced Total units to be produced Total units to be produced Question Content Area    Make 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 31 - Select - - Select - - Select - - Select -   Total Total Total Total Total   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 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    Make 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   Prepare a production budget for March. Prepare a direct materials purchases budget for March. Prepare a direct labor cost budget for March.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
100%

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:

 

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

Birmingham

Data

Thomas

8,000 units at $900 per unit

Polly

7,000 units at $700 per unit

 

London

Data

Thomas

6,000 units at $800 per unit

Polly

5,500 units at $650 per unit

 

International

Data

Thomas

3,000 units at $600 per unit

Polly

1,000 units at $350 per unit

  1. Estimated inventories at March 1:

Direct Materials

Data

    Fabric

2,750 sq. yds.  

    Wood

6,850 lineal ft.

    Filler

1,900 cu. ft.    

    Springs

3,500 units     

 

Finished Products

Units Completed

    Thomas

750 units

    Polly

150 units

  1. Desired inventories at March 31:

Direct Materials

Data

    Fabric

4,500 sq. yds.  

    Wood

10,000 lineal ft.

    Filler

2,500 cu. ft.    

    Springs

7,500 units     

 

Finished Products

Units Completed

    Thomas

1,000 units

    Polly

450 units

  1. Direct materials used in production:

In manufacture of Thomas

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      

 

In manufacture of Polly

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     

  1. 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       

  1. Direct labor requirements:

Thomas

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.

 

Polly

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:

  1. Prepare a sales budget for March.
  2. Prepare a production budget for March.
  3. Prepare a direct materials purchases budget for March.
  4. Prepare a direct labor cost budget for March.

 

Question Content Area

 

  1.  Make 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

 

Question Content Area

 

  1.  Make 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 31

- Select -

- Select -

Total

Total

Total

Less estimated inventory, March 1Less estimated inventory, March 31Plus estimated inventory, March 1Plus estimated inventory, March 31

- Select -

- Select -

Total units to be produced

Total units to be produced

Total units to be produced

Question Content Area

 

  1.  Make 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 31

- Select -

- Select -

- Select -

- Select -

 

Total

Total

Total

Total

Total

 

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

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

 

  1.  Make 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

 

  1. Prepare a production budget for March.
  2. Prepare a direct materials purchases budget for March.
  3. Prepare a direct labor cost budget for March.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 6 steps with 4 images

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education