The budget director of Kingdom Furniture Company requests estimates of sales, production and other operating data from

Question:

The budget director of Kingdom 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 May 2008 is summarized as follows:
a. Estimated sales of King and Prince chairs for May by sales territory:
Northern Domestic:
King . . . . . . . . . . . . . . . . . . . . 5,800 units at $650 per unit
Prince . . . . . . . . . . . . . . . . . . . 6,700 units at $420 per unit
Southern Domestic:
King . . . . . . . . . . . . . . . . . . . . 3,500 units at $590 per unit
Prince . . . . . . . . . . . . . . . . . . . 3,800 units at $480 per unit
International:
King . . . . . . . . . . . . . . . . . . . . 1,200 units at $700 per unit
Prince . . . . . . . . . . . . . . . . . . . 1,000 units at $530 per unit
b. Estimated inventories at May 1:

c. Desired inventories at May 31:

d. Direct materials used in production:
In manufacture of King:
Fabric . . . . . . . . . . . . . . . . . . . 4.6 sq. yds. per unit of product
Wood . . . . . . . . . . . . . . . . . . . 35 lineal ft. per unit of product
Filler . . . . . . . . . . . . . . . . . . . . 3.8 cu. ft. per unit of product
Springs . . . . . . . . . . . . . . . . . . 14 units per unit of product
In manufacture of Prince:
Fabric . . . . . . . . . . . . . . . . . . . 3 sq. yds. per unit of product
Wood . . . . . . . . . . . . . . . . . . . 25 lineal ft. per unit of product
Filler . . . . . . . . . . . . . . . . . . . . 3.2 cu. ft. per unit of product
Springs . . . . . . . . . . . . . . . . . . 10 units per unit of product

e. Anticipated purchase price for direct materials:
Fabric . . . . . . . $8.00 per square yard
Filler . . . . . . . . . $3.50 per cubic foot
Wood . . . . . . . . . . 7.00 per lineal foot
Springs . . . . . . . . . . . . . . 4.50 per unit
f. Direct labor requirements:
King:
Framing Department . . . . . . 2.5 hours at $12 per hour
Cutting Department . . . . . . . 1.5 hours at $9 per hour
Upholstery Department . . . . 2.0 hours at $15 per hour
Prince:
Framing Department . . . . . . 1.8 hours at $12 per hour
Cutting Department . . . . . . . 0.5 hour at $9 per hour
Upholstery Department . . . . 2.3 hours at $15 per hour

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