Scholastic Furniture, Inc. manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school systems throughout the Midwest. The controller of the company's Desk Division is currently preparing a budget for the second quarter of the year. The following sales forecast has been made by the division's sales manager.
April .............................................................. 10,000 desk-and-chair sets
May ............................................................... 12,000 desk-and-chair sets
June ............................................................... 15,000 desk-and-chair sets
Each desk-and-chair set requires 10 board feet of pine planks and 1.5 hours of direct labor. Each set sells for $50. Pine planks cost $.50 per board foot, and the division ends each month with enough wood to cover 10 percent of the next month's production requirements. The division incurs a cost of $20 per hour for direct-labor wages and fringe benefits. The division ends each month with enough finished-goods inventory to cover 20 percent of the next month's sales.
Required:
Complete the following budget schedules.
1. Sales budget:

2. Production budget (in sets):

3. Raw-material purchases:

4. Direct-labor budget:

Transcribed Image Text:

April 10,000 x $50 $500,000 May June Sales (in sets) Sales price per set. Sales revenue April 10,000 2,400 12,400 2,000 10,400 May June Sales Add: Desired ending inventory Total requirements Less: Projected beginning inventory. Planned production. 3,000 April 10,400 x 10 May June Planned production (sets) Raw material required per set (board fet Raw material required for production board feet 104,000 material, in board feet (10% of next month's requirement... 12,600 16,000 Total requirements Less: Projected beginning inventory of raw ...116,600 material, in board feet (10% of current month's requirement. 10,400 Planned purchases of raw material Cost per board foot Planned purchases of raw material (dollars) board feet 106,200 X $50 .. $53,100 April 10,400 x 1.5 15) x $20 May June Planned production (sets) Direct-labor hours per set Direct-labor hours required Cost per hour $312,000