Prepare a sales budget for July. Gourmet Grill Company Sales Budget For the Month Ending July 31 Product and Area Unit Sales Volume Unit Selling Price Total Sales Backyard Chef: Maine fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Vermont fill in the blank 4 fill in the blank 5 fill in the blank 6 New Hampshire fill in the blank 7 fill in the blank 8 fill in the blank 9 Total fill in the blank 10 $fill in the blank 11 Master Chef: Maine fill in the blank 12 $fill in the blank 13 $fill in the blank 14 Vermont fill in the blank 15 fill in the blank 16 fill in the blank 17 New Hampshire fill in the blank 18 fill in the blank 19 fill in the blank 20 Total fill in the blank 21 $fill in the blank 22 Total revenue from sales $fill in the blank 23 b. 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 Chef Master Chef Expected units to be sold fill in the blank 25 fill in the blank 26 Desired inventory, July 31 fill in the blank 28 fill in the blank 29 Total units available fill in the blank 31 fill in the blank 32 Estimated inventory, July 1 fill in the blank 34 fill in the blank 35 Total units to be produced fill in the blank 37 fill in the blank 38 c. 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 Grates (units) Stainless Steel (lbs.) Burner Sub- assemblies (units) Shelves (units) Total Required units for production: Backyard Chef fill in the blank 39 fill in the blank 40 fill in the blank 41 fill in the blank 42 Master Chef fill in the blank 43 fill in the blank 44 fill in the blank 45 fill in the blank 46 Desired inventory, July 31 fill in the blank 47 fill in the blank 48 fill in the blank 49 fill in the blank 50 Total fill in the blank 51 fill in the blank 52 fill in the blank 53 fill in the blank 54 Estimated inventory, July 1 fill in the blank 55 fill in the blank 56 fill in the blank 57 fill in the blank 58 Total units to be purchased fill in the blank 59 fill in the blank 60 fill in the blank 61 fill in the blank 62 Unit price $fill in the blank 63 $fill in the blank 64 $fill in the blank 65 $fill in the blank 66 Total direct materials to be purchased $fill in the blank 67 $fill in the blank 68 $fill in the blank 69 $fill in the blank 70 $fill in the blank 71
Prepare a sales budget for July. Gourmet Grill Company Sales Budget For the Month Ending July 31 Product and Area Unit Sales Volume Unit Selling Price Total Sales Backyard Chef: Maine fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Vermont fill in the blank 4 fill in the blank 5 fill in the blank 6 New Hampshire fill in the blank 7 fill in the blank 8 fill in the blank 9 Total fill in the blank 10 $fill in the blank 11 Master Chef: Maine fill in the blank 12 $fill in the blank 13 $fill in the blank 14 Vermont fill in the blank 15 fill in the blank 16 fill in the blank 17 New Hampshire fill in the blank 18 fill in the blank 19 fill in the blank 20 Total fill in the blank 21 $fill in the blank 22 Total revenue from sales $fill in the blank 23 b. 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 Chef Master Chef Expected units to be sold fill in the blank 25 fill in the blank 26 Desired inventory, July 31 fill in the blank 28 fill in the blank 29 Total units available fill in the blank 31 fill in the blank 32 Estimated inventory, July 1 fill in the blank 34 fill in the blank 35 Total units to be produced fill in the blank 37 fill in the blank 38 c. 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 Grates (units) Stainless Steel (lbs.) Burner Sub- assemblies (units) Shelves (units) Total Required units for production: Backyard Chef fill in the blank 39 fill in the blank 40 fill in the blank 41 fill in the blank 42 Master Chef fill in the blank 43 fill in the blank 44 fill in the blank 45 fill in the blank 46 Desired inventory, July 31 fill in the blank 47 fill in the blank 48 fill in the blank 49 fill in the blank 50 Total fill in the blank 51 fill in the blank 52 fill in the blank 53 fill in the blank 54 Estimated inventory, July 1 fill in the blank 55 fill in the blank 56 fill in the blank 57 fill in the blank 58 Total units to be purchased fill in the blank 59 fill in the blank 60 fill in the blank 61 fill in the blank 62 Unit price $fill in the blank 63 $fill in the blank 64 $fill in the blank 65 $fill in the blank 66 Total direct materials to be purchased $fill in the blank 67 $fill in the blank 68 $fill in the blank 69 $fill in the blank 70 $fill in the blank 71
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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:
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 |
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 |
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 |
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 |
Anticipated purchase price for direct materials:
| Grates | $15 per unit |
| Stainless steel | $6 per lb. |
| Burner subassemblies | $110 per unit |
| Shelves | $10 per unit |
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:
a. Prepare a sales budget for July.
| Gourmet Grill Company Sales Budget For the Month Ending July 31 |
||||
|---|---|---|---|---|
| Product and Area | Unit Sales Volume |
Unit Selling Price |
Total Sales | |
| Backyard Chef: | ||||
| Maine | fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 | |
| Vermont | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 | |
| New Hampshire | fill in the blank 7 | fill in the blank 8 | fill in the blank 9 | |
| Total | fill in the blank 10 | $fill in the blank 11 | ||
| Master Chef: | ||||
| Maine | fill in the blank 12 | $fill in the blank 13 | $fill in the blank 14 | |
| Vermont | fill in the blank 15 | fill in the blank 16 | fill in the blank 17 | |
| New Hampshire | fill in the blank 18 | fill in the blank 19 | fill in the blank 20 | |
| Total | fill in the blank 21 | $fill in the blank 22 | ||
| Total revenue from sales | $fill in the blank 23 |
b. 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 Chef | Master Chef | |
| Expected units to be sold | fill in the blank 25 | fill in the blank 26 |
| Desired inventory, July 31 | fill in the blank 28 | fill in the blank 29 |
| Total units available | fill in the blank 31 | fill in the blank 32 |
| Estimated inventory, July 1 | fill in the blank 34 | fill in the blank 35 |
| Total units to be produced | fill in the blank 37 | fill in the blank 38 |
c. 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 |
|||||
|---|---|---|---|---|---|
| Grates (units) |
Stainless Steel (lbs.) |
Burner Sub- assemblies (units) |
Shelves (units) |
Total | |
| Required units for production: | |||||
| Backyard Chef | fill in the blank 39 | fill in the blank 40 | fill in the blank 41 | fill in the blank 42 | |
| Master Chef | fill in the blank 43 | fill in the blank 44 | fill in the blank 45 | fill in the blank 46 | |
| Desired inventory, July 31 | fill in the blank 47 | fill in the blank 48 | fill in the blank 49 | fill in the blank 50 | |
| Total | fill in the blank 51 | fill in the blank 52 | fill in the blank 53 | fill in the blank 54 | |
| Estimated inventory, July 1 | fill in the blank 55 | fill in the blank 56 | fill in the blank 57 | fill in the blank 58 | |
| Total units to be purchased | fill in the blank 59 | fill in the blank 60 | fill in the blank 61 | fill in the blank 62 | |
| Unit price | $fill in the blank 63 | $fill in the blank 64 | $fill in the blank 65 | $fill in the blank 66 | |
| Total direct materials to be purchased | $fill in the blank 67 | $fill in the blank 68 | $fill in the blank 69 | $fill in the blank 70 | $fill in the blank 71 |
d. Prepare a direct labor cost budget for July.
| Gourmet Grill Company Direct Labor Cost Budget For the Month Ending July 31 |
||||||||
|---|---|---|---|---|---|---|---|---|
| Stamping Department |
Forming Department | Assembly Department | Total | |||||
| Hours required for production: | ||||||||
| Backyard Chef | fill in the blank 72 | fill in the blank 73 | fill in the blank 74 | |||||
| Master Chef | fill in the blank 75 | fill in the blank 76 | fill in the blank 77 | |||||
| Total | fill in the blank 78 | fill in the blank 79 | fill in the blank 80 | |||||
| Hourly rate | $fill in the blank | $fill in the blank | $fill in the blank | |||||
| Total direct labor cost | $fill in the blank | $fill in the blank | $fill in the blank | $fill in the blank 87 |
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