The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from

Question:

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 2016 is summarized as follows:

a. Estimated sales for July by sales territory:

Maine:

Backyard Chef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .310 units at $700 per unit

Master Chef .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 units at $1,200 per unit

Vermont:

Backyard Chef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240 units at $750 per unit

Master Chef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 units at $1,300 per unit

New Hampshire:

Backyard Chef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .360 units at $750 per unit

Master Chef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 units at $1,400 per unit

b. Estimated inventories at July 1:

The budget director of Gourmet Grill Company requests estimates of

c. Desired inventories at July 31:

d. Direct materials used in production:
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
In manufacture of Master Chef:
Grates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 units per unit of product
e. Anticipated purchase price for direct materials:
f. Direct labor requirements:

Backyard Chef:
Stamping Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50 hr. at $17 per hr.
Forming Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.60 hr. at $15 per hr.
Assembly Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..1.0 hr. at $14 per hr.
Master Chef:
Stamping Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0.60 hr. at $17 per hr.
Forming Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.80 hr. at $15 per hr.
Assembly Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.50 hrs. at $14 per hr.
Instructions
1. Prepare a sales budget for July.
2. Prepare a production budget for July.
3. Prepare a direct materials purchases budget for July.
4. Prepare a direct labor cost budget for July.