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...
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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.
![Gourmet Grill Company
Sales Budget
For the Month Ending July 31
Unit Sales Unit Selling
Product and Area
Total Sales
Volume
Price
Backyard Chef:
Maine
Vermont
New Hampshire
Total
Master Chef:
Maine
Vermont
New Hampshire
Total
Total revenue from sales
2. Prepare a production budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Gourmet Grill Company
Production Budget
For the Month Ending July 31
Units
Backyard
Master
Chef
Chef
Expected units to be sold v
Desired inventory, July 31 v
Total units available v
Estimated inventory, July 1 v
Total units to be produced V
3. Prepare a direct materials purchases budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc1addc0d-ad19-47e0-b731-19a33652960b%2F06b63cd8-1676-4299-b511-8c01f3e8ba9b%2F3n29r_processed.png&w=3840&q=75)
Transcribed Image Text:Gourmet Grill Company
Sales Budget
For the Month Ending July 31
Unit Sales Unit Selling
Product and Area
Total Sales
Volume
Price
Backyard Chef:
Maine
Vermont
New Hampshire
Total
Master Chef:
Maine
Vermont
New Hampshire
Total
Total revenue from sales
2. Prepare a production budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Gourmet Grill Company
Production Budget
For the Month Ending July 31
Units
Backyard
Master
Chef
Chef
Expected units to be sold v
Desired inventory, July 31 v
Total units available v
Estimated inventory, July 1 v
Total units to be produced V
3. Prepare a direct materials purchases budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
![Gourmet Grill Company
Direct Materials Purchases Budget
For the Month Ending July 31
Burner Sub-
Grates
Stainless Steel
Shelves
assemblies
Total
(units)
(Ibs.)
(units)
(units)
Required units for production:
Backyard Chef
Master Chef
Desired inventory, July 31
Total
Estimated inventory, July 1
Total units to be purchased
Unit price
Total direct materials to be purchased
$
4. Prepare a direct labor cost budget for July.
Gourmet Grill Company
Direct Labor Cost Budget
For the Month Ending July 31
Stamping
Forming
Assembly
Total
Department Department Department
Hours required for production:
Backyard Chef
Master Chef
Total
Hourly rate
Total direct labor cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc1addc0d-ad19-47e0-b731-19a33652960b%2F06b63cd8-1676-4299-b511-8c01f3e8ba9b%2Figsv0yf_processed.png&w=3840&q=75)
Transcribed Image Text:Gourmet Grill Company
Direct Materials Purchases Budget
For the Month Ending July 31
Burner Sub-
Grates
Stainless Steel
Shelves
assemblies
Total
(units)
(Ibs.)
(units)
(units)
Required units for production:
Backyard Chef
Master Chef
Desired inventory, July 31
Total
Estimated inventory, July 1
Total units to be purchased
Unit price
Total direct materials to be purchased
$
4. Prepare a direct labor cost budget for July.
Gourmet Grill Company
Direct Labor Cost Budget
For the Month Ending July 31
Stamping
Forming
Assembly
Total
Department Department Department
Hours required for production:
Backyard Chef
Master Chef
Total
Hourly rate
Total direct labor cost
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