The budget director of Peaky Blinders Furniture Company requests estimates of sales, production, and other operating data every month. Selected information concerning sales and production for March is summarized as follows: Estimated sales of Thomas and Polly chairs for March by sales territory: Birmingham Data Thomas 8,000 units at $900 per unit Polly 7,000 units at $700 per unit London Data Thomas 6,000 units at $800 per unit Polly 5,500 units at $650 per unit International Data Thomas 3,000 units at $600 per unit Polly 1,000 units at $350 per unit Estimated inventories at March 1: Direct Materials Data Fabric 2,750 sq. yds. Wood 6,850 lineal ft. Filler 1,900 cu. ft. Springs 3,500 units Finished Products Units Completed Thomas 750 units Polly 150 units Desired inventories at March 31: Direct Materials Data Fabric 4,500 sq. yds. Wood 10,000 lineal ft. Filler 2,500 cu. ft. Springs 7,500 units Finished Products Units Completed Thomas 1,000 units Polly 450 units Direct materials used in production: In manufacture of Thomas Data Fabric 2.0 sq. yds. per unit of product Wood 8 lineal ft. per unit of product Filler 3.8 cu. ft. per unit of product Springs 7 units per unit of product In manufacture of Polly Data Fabric 2.5 sq. yds. per unit of product Wood 6 lineal ft. per unit of product Filler 3.2 cu. ft. per unit of product Springs 5 units per unit of product Anticipated purchase price for direct materials: Department Data Fabric $10.00 per sq. yd. Wood 5.00 per lineal ft. Filler $1.50 per cu. ft. Springs 3.00 per unit Direct labor requirements: Thomas Data Framing Department 2.5 hrs. at $30 per hr. Cutting Department 1.0 hr. at $24 per hr. Upholstery Department 3.0 hrs. at $32 per hr. Polly Data Framing Department 1.5 hrs. at $30 per hr. Cutting Department 0.5 hr. at $24 per hr. Upholstery Department 2.0 hrs. at $32 per hr. Required: Prepare a sales budget for March. Prepare a production budget for March. Prepare a direct materials purchases budget for March. Prepare a direct labor cost budget for March. Question Content Area Make a sales budget for March. Product and Area Unit Sales Volume Unit Selling Price Total Sales Thomas: Birmingham Birmingham $Birmingham $Birmingham London London London London International International International International Total Total $Total Polly: Birmingham Birmingham $Birmingham $Birmingham London London London London International International International International Total Total $Total Total revenue from sales $Total revenue from sales Question Content Area Make a production budget for March. Line Item Description Thomas Units Polly Units Expected units to be sold Expected units to be sold Expected units to be sold Less desired inventory, March 1Less desired inventory, March 31Plus desired inventory, March 1Plus desired inventory, March 31 - Select - - Select - Total Total Total Less estimated inventory, March 1Less estimated inventory, March 31Plus estimated inventory, March 1Plus estimated inventory, March 31 - Select - - Select - Total units to be produced Total units to be produced Total units to be produced Question Content Area Make a direct materials purchases budget for March. Direct Materials: Fabric (sq. yds.) Wood (lineal ft.) Filler (cu. ft.) Springs (units) Total Required units for production: Thomas Thomas Thomas Thomas Thomas Polly Polly Polly Polly Polly Less desired inventory, March 1Less desired inventory, March 31Plus desired inventory, March 1Plus desired inventory, March 31 - Select - - Select - - Select - - Select - Total Total Total Total Total Less estimated inventory, March 1Less estimated inventory, March 31Plus estimated inventory, March 1Plus estimated inventory, March 31 - Select - - Select - - Select - - Select - Total units to be purchased Total units to be purchased Total units to be purchased Total units to be purchased Total units to be purchased Unit price $Unit price $Unit price $Unit price $Unit price Total direct materials to be purchased $Total direct materials to be purchased $Total direct materials to be purchased $Total direct materials to be purchased $Total direct materials to be purchased $Total direct materials to be purchased Question Content Area Make a direct labor cost budget for March. Line Item Description Framing Department Cutting Department Upholstery Department Total Hours required for production: Thomas Thomas Thomas Thomas Polly Polly Polly Polly Total Total Total Total Hourly rate $Hourly rate $Hourly rate $Hourly rate Total direct labor cost $Total direct labor cost $Total direct labor cost $Total direct labor cost $Total direct labor cost Prepare a production budget for March. Prepare a direct materials purchases budget for March. Prepare a direct labor cost budget for March.

The budget director of Peaky Blinders Furniture Company requests estimates of sales, production, and other operating data every month. Selected information concerning sales and production for March is summarized as follows: Estimated sales of Thomas and Polly chairs for March by sales territory: Birmingham Data Thomas 8,000 units at $900 per unit Polly 7,000 units at $700 per unit London Data Thomas 6,000 units at $800 per unit Polly 5,500 units at $650 per unit International Data Thomas 3,000 units at $600 per unit Polly 1,000 units at $350 per unit Estimated inventories at March 1: Direct Materials Data Fabric 2,750 sq. yds. Wood 6,850 lineal ft. Filler 1,900 cu. ft. Springs 3,500 units Finished Products Units Completed Thomas 750 units Polly 150 units Desired inventories at March 31: Direct Materials Data Fabric 4,500 sq. yds. Wood 10,000 lineal ft. Filler 2,500 cu. ft. Springs 7,500 units Finished Products Units Completed Thomas 1,000 units Polly 450 units Direct materials used in production: In manufacture of Thomas Data Fabric 2.0 sq. yds. per unit of product Wood 8 lineal ft. per unit of product Filler 3.8 cu. ft. per unit of product Springs 7 units per unit of product In manufacture of Polly Data Fabric 2.5 sq. yds. per unit of product Wood 6 lineal ft. per unit of product Filler 3.2 cu. ft. per unit of product Springs 5 units per unit of product Anticipated purchase price for direct materials: Department Data Fabric $10.00 per sq. yd. Wood 5.00 per lineal ft. Filler $1.50 per cu. ft. Springs 3.00 per unit Direct labor requirements: Thomas Data Framing Department 2.5 hrs. at $30 per hr. Cutting Department 1.0 hr. at $24 per hr. Upholstery Department 3.0 hrs. at $32 per hr. Polly Data Framing Department 1.5 hrs. at $30 per hr. Cutting Department 0.5 hr. at $24 per hr. Upholstery Department 2.0 hrs. at $32 per hr. Required: Prepare a sales budget for March. Prepare a production budget for March. Prepare a direct materials purchases budget for March. Prepare a direct labor cost budget for March. Question Content Area Make a sales budget for March. Product and Area Unit Sales Volume Unit Selling Price Total Sales Thomas: Birmingham Birmingham $Birmingham $Birmingham London London London London International International International International Total Total $Total Polly: Birmingham Birmingham $Birmingham $Birmingham London London London London International International International International Total Total $Total Total revenue from sales $Total revenue from sales Question Content Area Make a production budget for March. Line Item Description Thomas Units Polly Units Expected units to be sold Expected units to be sold Expected units to be sold Less desired inventory, March 1Less desired inventory, March 31Plus desired inventory, March 1Plus desired inventory, March 31 - Select - - Select - Total Total Total Less estimated inventory, March 1Less estimated inventory, March 31Plus estimated inventory, March 1Plus estimated inventory, March 31 - Select - - Select - Total units to be produced Total units to be produced Total units to be produced Question Content Area Make a direct materials purchases budget for March. Direct Materials: Fabric (sq. yds.) Wood (lineal ft.) Filler (cu. ft.) Springs (units) Total Required units for production: Thomas Thomas Thomas Thomas Thomas Polly Polly Polly Polly Polly Less desired inventory, March 1Less desired inventory, March 31Plus desired inventory, March 1Plus desired inventory, March 31 - Select - - Select - - Select - - Select - Total Total Total Total Total Less estimated inventory, March 1Less estimated inventory, March 31Plus estimated inventory, March 1Plus estimated inventory, March 31 - Select - - Select - - Select - - Select - Total units to be purchased Total units to be purchased Total units to be purchased Total units to be purchased Total units to be purchased Unit price $Unit price $Unit price $Unit price $Unit price Total direct materials to be purchased $Total direct materials to be purchased $Total direct materials to be purchased $Total direct materials to be purchased $Total direct materials to be purchased $Total direct materials to be purchased Question Content Area Make a direct labor cost budget for March. Line Item Description Framing Department Cutting Department Upholstery Department Total Hours required for production: Thomas Thomas Thomas Thomas Polly Polly Polly Polly Total Total Total Total Hourly rate $Hourly rate $Hourly rate $Hourly rate Total direct labor cost $Total direct labor cost $Total direct labor cost $Total direct labor cost $Total direct labor cost Prepare a production budget for March. Prepare a direct materials purchases budget for March. Prepare a direct labor cost budget for March.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 2PB: Sales, production, direct materials purchases, and direct labor cost budgets The budget director of...

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Estimated sales of Thomas and Polly chairs for March by sales territory:

Birmingham	Data
Thomas	8,000 units at $900 per unit
Polly	7,000 units at $700 per unit

London	Data
Thomas	6,000 units at $800 per unit
Polly	5,500 units at $650 per unit

International	Data
Thomas	3,000 units at $600 per unit
Polly	1,000 units at $350 per unit

Estimated inventories at March 1:

Direct Materials	Data
Fabric	2,750 sq. yds.
Wood	6,850 lineal ft.
Filler	1,900 cu. ft.
Springs	3,500 units

Finished Products	Units Completed
Thomas	750 units
Polly	150 units

Desired inventories at March 31:

Direct Materials	Data
Fabric	4,500 sq. yds.
Wood	10,000 lineal ft.
Filler	2,500 cu. ft.
Springs	7,500 units

Finished Products	Units Completed
Thomas	1,000 units
Polly	450 units

Direct materials used in production:

In manufacture of Thomas	Data
Fabric	2.0 sq. yds. per unit of product
Wood	8 lineal ft. per unit of product
Filler	3.8 cu. ft. per unit of product
Springs	7 units per unit of product

In manufacture of Polly	Data
Fabric	2.5 sq. yds. per unit of product
Wood	6 lineal ft. per unit of product
Filler	3.2 cu. ft. per unit of product
Springs	5 units per unit of product

Anticipated purchase price for direct materials:

Department	Data
Fabric	$10.00 per sq. yd.
Wood	5.00 per lineal ft.
Filler	$1.50 per cu. ft.
Springs	3.00 per unit

Direct labor requirements:

Thomas	Data
Framing Department	2.5 hrs. at $30 per hr.
Cutting Department	1.0 hr. at $24 per hr.
Upholstery Department	3.0 hrs. at $32 per hr.

Polly	Data
Framing Department	1.5 hrs. at $30 per hr.
Cutting Department	0.5 hr. at $24 per hr.
Upholstery Department	2.0 hrs. at $32 per hr.

Required:

Prepare a sales budget for March.
Prepare a production budget for March.
Prepare a direct materials purchases budget for March.
Prepare a direct labor cost budget for March.

Question Content Area

Make a sales budget for March.

Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
Thomas:
Birmingham	Birmingham	$Birmingham	$Birmingham
London	London	London	London
International	International	International	International
Total	Total		$Total
Polly:
Birmingham	Birmingham	$Birmingham	$Birmingham
London	London	London	London
International	International	International	International
Total	Total		$Total
Total revenue from sales			$Total revenue from sales

Question Content Area

Make a production budget for March.

Line Item Description	Thomas Units	Polly Units
Expected units to be sold	Expected units to be sold	Expected units to be sold
Less desired inventory, March 1Less desired inventory, March 31Plus desired inventory, March 1Plus desired inventory, March 31	- Select -	- Select -
Total	Total	Total
Less estimated inventory, March 1Less estimated inventory, March 31Plus estimated inventory, March 1Plus estimated inventory, March 31	- Select -	- Select -
Total units to be produced	Total units to be produced	Total units to be produced

Question Content Area

Make a direct materials purchases budget for March.

Direct Materials:	Fabric (sq. yds.)	Wood (lineal ft.)	Filler (cu. ft.)	Springs (units)	Total
Required units for production:
Thomas	Thomas	Thomas	Thomas	Thomas
Polly	Polly	Polly	Polly	Polly
Less desired inventory, March 1Less desired inventory, March 31Plus desired inventory, March 1Plus desired inventory, March 31	- Select -	- Select -	- Select -	- Select -
Total	Total	Total	Total	Total
Less estimated inventory, March 1Less estimated inventory, March 31Plus estimated inventory, March 1Plus estimated inventory, March 31	- Select -	- Select -	- Select -	- Select -
Total units to be purchased	Total units to be purchased	Total units to be purchased	Total units to be purchased	Total units to be purchased
Unit price	$Unit price	$Unit price	$Unit price	$Unit price
Total direct materials to be purchased	$Total direct materials to be purchased	$Total direct materials to be purchased	$Total direct materials to be purchased	$Total direct materials to be purchased	$Total direct materials to be purchased

Question Content Area

Make a direct labor cost budget for March.

Line Item Description	Framing Department	Cutting Department	Upholstery Department	Total
Hours required for production:
Thomas	Thomas	Thomas	Thomas
Polly	Polly	Polly	Polly
Total	Total	Total	Total
Hourly rate	$Hourly rate	$Hourly rate	$Hourly rate
Total direct labor cost	$Total direct labor cost	$Total direct labor cost	$Total direct labor cost	$Total direct labor cost

Prepare a production budget for March.
Prepare a direct materials purchases budget for March.
Prepare a direct labor cost budget for March.

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