Required: 1. Prepare a sales budget for February. Royal Furniture Company Sales Budget For the Month Ending February 28 Product and Area Unit Sales Volume Unit Selling Price Total Sales King: Northern Domestic fill in the blank 1 fill in the blank 2 fill in the blank 3 Southern Domestic fill in the blank 4 fill in the blank 5 fill in the blank 6 International 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 Prince: Northern Domestic fill in the blank 12 fill in the blank 13 fill in the blank 14 Southern Domestic fill in the blank 15 fill in the blank 16 fill in the blank 17 International 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 2. Prepare a production budget for February. Royal Furniture Company Production Budget For the Month Ending February 28 Units King Prince Expected units to be sold fill in the blank 24 fill in the blank 25 Plus desired inventory, February 28 fill in the blank 26 fill in the blank 27 Total units required fill in the blank 28 fill in the blank 29 Less estimated inventory, February 1 fill in the blank 30 fill in the blank 31 Total units to be produced fill in the blank 32 fill in the blank 33 3. Prepare a direct materials purchases budget for February. Royal Furniture Company Direct Materials Purchases Budget For the Month Ending February 28 Direct Materials Fabric (sq. yds.) Wood (linear ft.) Filler (cu. ft.) Springs (units) Total Required units for production: King fill in the blank 34 fill in the blank 35 fill in the blank 36 fill in the blank 37 Prince fill in the blank 38 fill in the blank 39 fill in the blank 40 fill in the blank 41 Plus desired inventory, February 28 fill in the blank 42 fill in the blank 43 fill in the blank 44 fill in the blank 45 Total units required fill in the blank 46 fill in the blank 47 fill in the blank 48 fill in the blank 49 Less estimated inventory, February 1 fill in the blank 50 fill in the blank 51 fill in the blank 52 fill in the blank 53 Total units to be purchased fill in the blank 54 fill in the blank 55 fill in the blank 56 fill in the blank 57 Unit price fill in the blank 58 fill in the blank 59 fill in the blank 60 fill in the blank 61 Total direct materials to be purchased fill in the blank 62 fill in the blank 63 fill in the blank 64 fill in the blank 65 fill in the blank 66 4. Prepare a direct labor cost budget for February. Royal Furniture Company Direct Labor Cost Budget For the Month Ending February 28 Framing Department Cutting Department Upholstery Department Total Hours required for production: King fill in the blank 67 fill in the blank 68 fill in the blank 69 Prince fill in the blank 70 fill in the blank 71 fill in the blank 72 Total hours required fill in the blank 73 fill in the blank 74 fill in the blank 75 Hourly rate fill in the blank 76 fill in the blank 77 fill in the blank 78 Total direct labor cost fill in the blank 79 fill in the blank 80 fill in the blank 81 fill in the blank 82

Required: 1. Prepare a sales budget for February. Royal Furniture Company Sales Budget For the Month Ending February 28 Product and Area Unit Sales Volume Unit Selling Price Total Sales King: Northern Domestic fill in the blank 1 fill in the blank 2 fill in the blank 3 Southern Domestic fill in the blank 4 fill in the blank 5 fill in the blank 6 International 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 Prince: Northern Domestic fill in the blank 12 fill in the blank 13 fill in the blank 14 Southern Domestic fill in the blank 15 fill in the blank 16 fill in the blank 17 International 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 2. Prepare a production budget for February. Royal Furniture Company Production Budget For the Month Ending February 28 Units King Prince Expected units to be sold fill in the blank 24 fill in the blank 25 Plus desired inventory, February 28 fill in the blank 26 fill in the blank 27 Total units required fill in the blank 28 fill in the blank 29 Less estimated inventory, February 1 fill in the blank 30 fill in the blank 31 Total units to be produced fill in the blank 32 fill in the blank 33 3. Prepare a direct materials purchases budget for February. Royal Furniture Company Direct Materials Purchases Budget For the Month Ending February 28 Direct Materials Fabric (sq. yds.) Wood (linear ft.) Filler (cu. ft.) Springs (units) Total Required units for production: King fill in the blank 34 fill in the blank 35 fill in the blank 36 fill in the blank 37 Prince fill in the blank 38 fill in the blank 39 fill in the blank 40 fill in the blank 41 Plus desired inventory, February 28 fill in the blank 42 fill in the blank 43 fill in the blank 44 fill in the blank 45 Total units required fill in the blank 46 fill in the blank 47 fill in the blank 48 fill in the blank 49 Less estimated inventory, February 1 fill in the blank 50 fill in the blank 51 fill in the blank 52 fill in the blank 53 Total units to be purchased fill in the blank 54 fill in the blank 55 fill in the blank 56 fill in the blank 57 Unit price fill in the blank 58 fill in the blank 59 fill in the blank 60 fill in the blank 61 Total direct materials to be purchased fill in the blank 62 fill in the blank 63 fill in the blank 64 fill in the blank 65 fill in the blank 66 4. Prepare a direct labor cost budget for February. Royal Furniture Company Direct Labor Cost Budget For the Month Ending February 28 Framing Department Cutting Department Upholstery Department Total Hours required for production: King fill in the blank 67 fill in the blank 68 fill in the blank 69 Prince fill in the blank 70 fill in the blank 71 fill in the blank 72 Total hours required fill in the blank 73 fill in the blank 74 fill in the blank 75 Hourly rate fill in the blank 76 fill in the blank 77 fill in the blank 78 Total direct labor cost fill in the blank 79 fill in the blank 80 fill in the blank 81 fill in the blank 82

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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Question

Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets

The budget director of Royal Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for February is summarized as follows:

a. Estimated sales of King and Prince chairs for February by sales territory:

Northern Domestic:
King	610 units at $780 per unit
Prince	750 units at $550 per unit
Southern Domestic:
King	340 units at $780 per unit
Prince	440 units at $550 per unit
International:
King	360 units at $850 per unit
Prince	290 units at $600 per unit

b. Estimated inventories at February 1:

Direct materials:
Fabric	420 sq. yds.
Wood	580 linear ft.
Filler	250 cu. ft.
Springs	660 units
Finished products:
King	90 units
Prince	25 units

c. Desired inventories at February 28:

Direct materials:
Fabric	390 sq. yds.
Wood	650 linear ft.
Filler	300 cu. ft.
Springs	540 units
Finished products:
King	80 units
Prince	35 units

d. Direct materials used in production:

In manufacture of King:
Fabric	6.0 sq. yds. per unit of product
Wood	38 linear ft. per unit of product
Filler	4.2 cu. ft. per unit of product
Springs	16 units per unit of product
In manufacture of Prince:
Fabric	4.0 sq. yds. per unit of product
Wood	26 linear ft. per unit of product
Filler	3.4 cu. ft. per unit of product
Springs	12 units per unit of product

e. Anticipated purchase price for direct materials:

Fabric	$12.00	per sq. yd.
Wood	7.00	per linear ft.
Filler	$3.00	per cu. ft.
Springs	4.50	per unit

f. Direct labor requirements:

King:
Framing Department	1.2 hrs. at $12 per hr.
Cutting Department.	0.5 hr. at $14 per hr.
Upholstery Department	0.8 hr. at $15 per hr.
Prince:
Framing Department	1.0 hr. at $12 per hr.
Cutting Department.	0.4 hr. at $14 per hr.
Upholstery Department	0.6 hr. at $15 per hr.

Required:

1. Prepare a sales budget for February.

Royal Furniture Company Sales Budget For the Month Ending February 28
Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
King:
	Northern Domestic	fill in the blank 1	fill in the blank 2	fill in the blank 3
	Southern Domestic	fill in the blank 4	fill in the blank 5	fill in the blank 6
	International	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

Prince:
	Northern Domestic	fill in the blank 12	fill in the blank 13	fill in the blank 14
	Southern Domestic	fill in the blank 15	fill in the blank 16	fill in the blank 17
	International	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

2. Prepare a production budget for February.

Royal Furniture Company Production Budget For the Month Ending February 28
	Units
	King	Prince
Expected units to be sold	fill in the blank 24	fill in the blank 25
Plus desired inventory, February 28	fill in the blank 26	fill in the blank 27
Total units required	fill in the blank 28	fill in the blank 29
Less estimated inventory, February 1	fill in the blank 30	fill in the blank 31
Total units to be produced	fill in the blank 32	fill in the blank 33

3. Prepare a direct materials purchases budget for February.

Royal Furniture Company Direct Materials Purchases Budget For the Month Ending February 28
	Direct Materials
		Fabric (sq. yds.)	Wood (linear ft.)	Filler (cu. ft.)	Springs (units)	Total
Required units for production:
King		fill in the blank 34	fill in the blank 35	fill in the blank 36	fill in the blank 37
Prince		fill in the blank 38	fill in the blank 39	fill in the blank 40	fill in the blank 41
Plus desired inventory, February 28		fill in the blank 42	fill in the blank 43	fill in the blank 44	fill in the blank 45
Total units required		fill in the blank 46	fill in the blank 47	fill in the blank 48	fill in the blank 49
Less estimated inventory, February 1		fill in the blank 50	fill in the blank 51	fill in the blank 52	fill in the blank 53
Total units to be purchased		fill in the blank 54	fill in the blank 55	fill in the blank 56	fill in the blank 57
Unit price		fill in the blank 58	fill in the blank 59	fill in the blank 60	fill in the blank 61
Total direct materials to be purchased		fill in the blank 62	fill in the blank 63	fill in the blank 64	fill in the blank 65	fill in the blank 66

4. Prepare a direct labor cost budget for February.

Royal Furniture Company Direct Labor Cost Budget For the Month Ending February 28
		Framing Department		Cutting Department		Upholstery Department	Total
Hours required for production:
	King		fill in the blank 67		fill in the blank 68		fill in the blank 69
	Prince		fill in the blank 70		fill in the blank 71		fill in the blank 72
	Total hours required		fill in the blank 73		fill in the blank 74		fill in the blank 75
Hourly rate		fill in the blank 76		fill in the blank 77		fill in the blank 78
Total direct labor cost		fill in the blank 79		fill in the blank 80		fill in the blank 81	fill in the blank 82

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