Question

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 2014 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
New Hampshire:
Backyard Chef .......360 units at $850 per unit
Master Chef..........290 units at $600 per unit
b. Estimated inventories at February 1:


c. Desired inventories at February 28:


d. Direct materials used in production:


e. Anticipated purchase price for direct materials:



f. Direct labor requirements:


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


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  • CreatedJune 27, 2014
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