Scholastic Furniture, Inc., manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school systems throughout the Midwest. The controller of the companys Desk Division is currently preparing a budget for the second quarter of the year. The following sales forecast has been made by the divisions sales manager.

April	10,000	desk-and-chair sets
May	12,000	desk-and-chair sets
June	15,000	desk-and-chair sets

Each desk-and-chair set requires 10 board feet of pine planks and 1.5 hours of direct labor. Each set sells for $50. Pine planks cost $0.50 per board foot, and the division ends each month with enough wood to cover 10 percent of the next months production requirements. The division incurs a cost of $20 per hour for direct-labor wages and fringe benefits. The division ends each month with enough finished-goods inventory to cover 20 percent of the next months sales. Required: Complete the following budget schedules. 1. Sales budget. 2. Production budget (in sets). 3. Raw-material purchases. 4. Direct-labor budget.

• Required 1
• Required 2
• Required 3
• Required 4

Sales budget:

	April May June Sales (in sets) 10,000 Sales price per set $50 Sales revenue $500,000 $0 $0

Production budget (in sets):

	April May June Sales 10,000 Add: Desired ending inventory 2,400 3,000 Total requirements 12,400 0 3,000 Less: Projected beginning inventory 2,000 Planned production 10,400 0 3,000

Raw-material purchases: (Round "Cost per board foot" to 2 decimal places.)

April May June Planned production (sets) 10,400 Raw material required per set (board feet) 10 Raw material required for production (board feet) 104,000 0 0 Add: Desired ending inventory of raw material, in board feet (10% of next months requirement) 12,600 16,000 Total requirements 116,600 0 16,000 Less: Projected beginning inventory of raw material, in board feet (10% of current months requirement) 10,400 Planned purchases of raw material (board feet) 106,200 0 16,000 Cost per board foot $0.50 Planned purchases of raw material (dollars) $53,100 $0 $0

Direct-labor budget: (Round "Direct labor hours per set" to 1 decimal place.)

	April May June Planned production (sets) 10,400 Direct-labor hours per set 1.5 Direct-labor hours required 15,600 0 0 Cost per hour $20 Planned direct-labor cost $312,000 $0 $0