Sales, Production, Direct Materials Purchases, and Direct Labor Cost

The budget director of Royal British 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 March is summarized as follows:

a. Estimated sales of William and Kate chairs for March by sales territory:

Eastern Domestic:
	William	8,750 units at $800 per unit
	Kate	6,000 units at $650 per unit
Western Domestic:
	William	6,000 units at $700 per unit
	Kate	7,000 units at $550 per unit
International:
	William	3,750 units at $600 per unit
	Kate	1,000 units at $350 per unit

b. Estimated inventories at March 1:

Direct materials:				Finished products:
Fabric		5,500	sq. yds.	William	1,500	units
Wood		13,700	lineal ft.	Kate	300	units
Filler		3,800	cu. ft.
Springs		3,500	units

c. Desired inventories at March 31:

Direct materials:				Finished products:
Fabric		9,000	sq. yds.	William	2,000	units
Wood		20,000	lineal ft.	Kate	900	units
Filler		5,000	cu. ft.
Springs		7,500	units

d. Direct materials used in production:

In manufacture of William:
Fabric		4.0	sq. yds. per unit of product
Wood		16	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 Kate:
Fabric		2.5	sq. yds. per unit of product
Wood		12	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		$9.00	per sq. yd.		Filler		$1.50	per cu. ft.
Wood		5.00	per lineal ft.		Springs		2.00	per unit

f. Direct labor requirements:

William:
Framing Department		2.5 hrs. at $15 per hr.
Cutting Department		1.0 hr. at $12 per hr.
Upholstery Department		3.0 hrs. at $16 per hr.
Kate:
Framing Department		1.5 hrs. at $15 per hr.
Cutting Department		0.5 hr. at $12 per hr.
Upholstery Department		2.0 hrs. at $16 per hr.

1. Prepare a sales budget for March.

Royal British Furniture Company Sales Budget For the Month Ending March 31

Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
William:
Eastern Domestic	fill in the blank	$fill in the blank	$fill in the blank
Western Domestic	fill in the blank 164c1dfb806404e_4	fill in the blank 164c1dfb806404e_5	fill in the blank 164c1dfb806404e_6
International	fill in the blank 164c1dfb806404e_7	fill in the blank 164c1dfb806404e_8	fill in the blank 164c1dfb806404e_9
Total	fill in the blank 164c1dfb806404e_10		$fill in the blank 164c1dfb806404e_11
Kate:
Eastern Domestic	fill in the blank 164c1dfb806404e_12	$fill in the blank 164c1dfb806404e_13	$fill in the blank 164c1dfb806404e_14
Western Domestic	fill in the blank 164c1dfb806404e_15	fill in the blank 164c1dfb806404e_16	fill in the blank 164c1dfb806404e_17
International	fill in the blank 164c1dfb806404e_18	fill in the blank 164c1dfb806404e_19	fill in the blank 164c1dfb806404e_20
Total	fill in the blank 164c1dfb806404e_21		$fill in the blank 164c1dfb806404e_22
Total revenue from sales			$fill in the blank 164c1dfb806404e_23

2. Prepare a production budget for March.

Royal British Furniture Company Production Budget For the Month Ending March 31

	William Units	Kate Units
Expected units to be sold	fill in the blank 6f45a702f05c068_1	fill in the blank 6f45a702f05c068_2
Less desired inventory, March 1Less desired inventory, March 31Plus desired inventory, March 1Plus desired inventory, March 31Plus desired inventory, March 31	Plus desired inventory, March 31	Plus desired inventory, March 31
Total	fill in the blank 6f45a702f05c068_6	fill in the blank 6f45a702f05c068_7
Less estimated inventory, March 1Less estimated inventory, March 31Plus estimated inventory, March 1Plus estimated inventory, March 31Less estimated inventory, March 1	Less estimated inventory, March 1	Less estimated inventory, March 1
Total units to be produced	fill in the blank 6f45a702f05c068_11	fill in the blank

3. Prepare a direct materials purchases budget for March.

Royal British Furniture Company Direct Materials Purchases Budget For the Month Ending March 31

	Fabric (sq. yds.)	Wood (lineal ft.)	Direct Materials Filler (cu. ft.)	Springs (units)	Total
Required units for production:
William	fill in the blank d3faf700605d016_1	fill in the blank d3faf700605d016_2	fill in the blank d3faf700605d016_3	fill in the blank d3faf700605d016_4
Kate	fill in the blank d3faf700605d016_5	fill in the blank d3faf700605d016_6	fill in the blank d3faf700605d016_7	fill in the blank d3faf700605d016_8
Less desired inventory, March 1Less desired inventory, March 31Plus desired inventory, March 1Plus desired inventory, March 31Plus desired inventory, March 31	Plus desired inventory, March 31	Plus desired inventory, March 31	Plus desired inventory, March 31	Plus desired inventory, March 31
Total	fill in the blank d3faf700605d016_14	fill in the blank d3faf700605d016_15	fill in the blank d3faf700605d016_16	fill in the blank d3faf700605d016_17
Less estimated inventory, March 1Less estimated inventory, March 31Plus estimated inventory, March 1Plus estimated inventory, March 31Less estimated inventory, March 1	Less estimated inventory, March 1	Less estimated inventory, March 1	Less estimated inventory, March 1	Less estimated inventory, March 1
Total units to be purchased	fill in the blank d3faf700605d016_23	fill in the blank d3faf700605d016_24	fill in the blank d3faf700605d016_25	fill in the blank d3faf700605d016_26
Unit price	$fill in the blank d3faf700605d016_27	$fill in the blank d3faf700605d016_28	$fill in the blank d3faf700605d016_29	$fill in the blank d3faf700605d016_30
Total direct materials to be purchased	$fill in the blank d3faf700605d016_31	$fill in the blank d3faf700605d016_32	$fill in the blank d3faf700605d016_33	$fill in the blank d3faf700605d016_34	$fill in the blank d3faf700605d016_35

4. Prepare a direct labor cost budget for March.

Royal British Furniture Company Direct Labor Cost Budget For the Month Ending March 31

	Framing Department	Cutting Department	Upholstery Department	Total
Hours required for production:
William	fill in the blank 39874efb607206d_1	fill in the blank 39874efb607206d_2	fill in the blank 39874efb607206d_3
Kate	fill in the blank 39874efb607206d_4	fill in the blank 39874efb607206d_5	fill in the blank 39874efb607206d_6
Total	fill in the blank 39874efb607206d_7	fill in the blank 39874efb607206d_8	fill in the blank 39874efb607206d_9
Hourly rate	$fill in the blank 39874efb607206d_10	$fill in the blank 39874efb607206d_11	$fill in the blank 39874efb607206d_12
Total direct labor cost	$fill in the blank 39874efb607206d_13	$fill in the blank 39874efb607206d_14	$fill in the blank 39874efb607206d_15	$fill in the blank 39874efb607206d_16