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 March is summarized as follows:

a. Estimated sales for March by sales territory:

Maine:

Backyard Chef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 units at $800 per unit

Master Chef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 units at $1,400 per unit

Vermont:

Backyard Chef. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400 units at $825 per unit

Master Chef . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240 units at $1,500 per unit

New Hampshire:

Backyard Chef. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 units at $850 per unit

Master Chef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 units at $1,600 per unit

b. Estimated inventories at March 1:

Direct materials:

Grates . . . . . . . . . . . . . . . . . . . . . . . .   320 units

Stainless steel . . . . . . . . . . . . . . . . . . . . 1,700 lb.

Burner subassemblies . . . . . . . . . . . . . 190 units

Shelves . . . . . . . . . . . . . . . . . . . . . . . . . 350 units

Finished products:

Backyard Chef . . . . . . . . . . . . . 30 units

Master Chef . . . . . . . . . . . . . . . 36 units

c. Desired inventories at March 31:

d. Direct materials used in production:
In manufacture of Backyard Chef:
Grates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 units per unit of product
Stainless steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 lb. 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
Stainless steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 lb. per unit of product
Burner subassemblies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 units per unit of product
Shelves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 units per unit of product
e. Anticipated purchase price for direct materials:
Grates . . . . . . . . . . . . . . . . . . . . . . $16 per unit
Stainless steel . . . . . . . . . . . . . . . . . . $8 per lb.
Burner subassemblies . . . . . . . . . $120 per unit
Shelves . . . . . . . . . . . . . . . . . . . . . . $12 per unit
f. Direct labor requirements:
Backyard Chef:
Stamping Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50 hr. at $18 per hr.
Forming Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.60 hr. at $16 per hr.
Assembly Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00 hr. at $15 per hr.
Master Chef:
Stamping Department . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . 0.60 hr. at $18 per hr.
Forming Department . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . 0.80 hr. at $16 per hr.
Assembly Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.50 hrs. at $15 per hr.
Instructions
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.

Transcribed Image Text:

Direct materials: Finished products Backyard Chef units 210 units