$1161$

PR $22-2$A Sales, Production, Direct Materials Purchases, and Direct

Lahor Cost Budgets

Obj. $4$

The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows:

a$.$ Estimated sales for July by sales territory:

$\backslash$table$[[$Maine:$,],[$Backyard Chef,$310$ units at $$700$ per unit$],[$Master Chef,$150$ units at $$1,200$ per unit$],[$Vermont:$,240$ units at $$750$ per unit$],[$Mackyard Chef,$110$ units at $$1,300$ per unit$],[$New Hampshire:,$360$ units at $$750$ per unit$],[$Backyard Chef,$180$ units at $$1,400$ per unit$],[$Master Chef,$]]$

b$.$ Estimated inventories at July $1$:

$\backslash$table$[[$Direct materials:,,,$\backslash$table$[[$Finished$],[$products:$]],],[$Grates$,290,$units,$\backslash$table$[[$Backyard$],[$Chef$]],\backslash$table$[[30],[$units$]]],[$Stainless steel,$1,500,$lbs$.,$Master Chef,$\backslash$table$[[32],[$units$]]],[$Burner subassemblies,$170,$units,,$],[$Shelves$,340,$units,,$]]$

c$.$ Desired inventories at July $31$:

$\backslash$table$[[$Direct materials:,,,$\backslash$table$[[$Finished$],[$products:$]],],[$Grates$,340,$units,$\backslash$table$[[$Backyard$],[$Chef$]],\backslash$table$[[40],[$units$]]],[$Stainless steel,$1,800,$lbs$.,$Master Chef,$\backslash$table$[[22],[$units$]]],[$Burner subassemblies,$155,$units,,$],[$Shelves$,315,$units,,$]]$

d$.$ Direct materials used in production:

$\backslash$table$[[$Stainless steel,$1,800,$lbs$.,$Master Chef,$\backslash$table$[[22],[$units$]]],[$Burner subassemblies,$155,$units,,$],[$Shelves$,315,$units,,$]]$

d$.$ Direct materials used in production:

$\backslash$table$[[$In manufacture of Backyard Chef:,,$],[$Grates$,3,$units per unit of product$],[$Stainless steel,$24,$lbs$.$ per unit of product$],[$Burner subassemblies,$2,$units per unit of product$],[$Shelves$,4,$units per unit of product$],[$Grates$,42,$lbs$.$ per unit of product$],[$Stainless steel,$4,$units per unit of product$],[$Burner subassemblies,$5,$units per unit of product$],[$Shelves$,,]]$

e$.$ Anticipated purchase price for direct materials:

$\backslash$table$[[$Grates$,$$$15,\backslash$table$[[$per$],[$unit$]],$Burner subassemblies,$$110,\backslash$table$[[$per$],[$unit$]]],[\backslash$table$[[$Stainless$],[$steel$]],$$$6,\backslash$table$[[$per$],[$lb$.]],$Shelves,$$10,\backslash$table$[[$per$],[$unit$]]]]$

f$.$ Direct labor requirements:

$\backslash$table$[[$Backyard Chef:,$],[$Stamping Department,$0\mathrm{.}50$ hr $.$ at $$17$ per hr$.],[$Forming Department,$0\mathrm{.}60$ hr $.$ at $$15$ per hr$.],[$Assembly Department,$1\mathrm{.}00$ hr $.$ at $$14$ per hr$.],[$Master Chef:,$0\mathrm{.}60$ hr $.$ at $$17$ per hr$.],[$Stamping Department,$0\mathrm{.}80$ hr $.$ at $$15$ per hr$.],[$Forming Department,$1\mathrm{.}50$ hrs $.$ at $$14$ per hr$.],[$Assembly Department,$]]$

$1162$

Instructions

Prepare a sales budget for July.

Prepare a production budget for July.

Prepare a direct materials purchases budget for July.

Prepare a direct labor cost budget for July.