Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets 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 July is summarized as follows: a. Estimated sales for July by sales territory: Maine: Backyard Chef 310 units at $700 per unit Master Chef 150 units at $1,200 per un
Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets 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 July is summarized as follows: a. Estimated sales for July by sales territory: Maine: Backyard Chef 310 units at $700 per unit Master Chef 150 units at $1,200 per un
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter22: Budgeting
Section: Chapter Questions
Problem 2PA: Sales, production, direct materials purchases, and direct labor cost budgets The budget director of...
Related questions
Question
Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets
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 July is summarized as follows:
a. Estimated sales for July by sales territory:
Maine: | |
Backyard Chef | 310 units at $700 per unit |
Master Chef | 150 units at $1,200 per unit |
Vermont: | |
Backyard Chef | 240 units at $750 per unit |
Master Chef | 110 units at $1,300 per unit |
New Hampshire: | |
Backyard Chef | 360 units at $750 per unit |
Master Chef | 180 units at $1,400 per unit |
b. Estimated inventories at July 1:
Direct materials: | |
Grates | 290 units |
Stainless steel | 1,500 lbs. |
Burner subassemblies | 170 units |
Shelves | 340 units |
Finished products: | |
Backyard Chef | 30 units |
Master Chef | 32 units |
c. Desired inventories at July 31:
Direct materials: | |
Grates | 340 units |
Stainless steel | 1,800 lbs. |
Burner subassemblies | 155 units |
Shelves | 315 units |
Finished products: | |
Backyard Chef | 40 units |
Master Chef | 22 units |
d. Direct materials used in production:
In manufacture of Backyard Chef: | |
Grates | 3 units per unit of product |
Stainless steel | 24 lbs. 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 lbs. 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 | $15 per unit |
Stainless steel | $6 per lb. |
Burner subassemblies | $110 per unit |
Shelves | $10 per unit |
f. Direct labor requirements:
Backyard Chef: | |
Stamping Department | 0.50 hr. at $17 per hr. |
Forming Department | 0.60 hr. at $15 per hr. |
Assembly Department | 1.00 hr. at $14 per hr. |
Master Chef: | |
Stamping Department | 0.60 hr. at $17 per hr. |
Forming Department | 0.80 hr. at $15 per hr. |
Assembly Department | 1.50 hrs. at $14 per hr. |
Required:
1. Prepare a sales budget for July.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
Recommended textbooks for you
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub