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 150 units at $1,200 per unit Master Chef. Vermont: Backyard Chef. 240 units at $750 per unit Master Chef 110 units at $1,300 per unit New Hampshire: Backyard Chef. Master Chef 360 units at $750 per unit 180 units at $1,400 per unit b. Estimated inventories at July 1: Direct materials: Finished products: Grates.. 290 units Backyard Chef 30 units Stainless steel. 1,500 Ibs. Master Chef. 32 units Burner subassemblies 170 units Shelves.. 340 units c. Desired inventories at July 31: Direct materials: Finished products: Backyard Chef Master Chef.. Grates. 340 units 40 units Stainless steel. 1,800 lbs. 22 units Burner subassemblies 155 units Shelves.. 315 units d. Direct materials used in production: In manufacture of Backyard Chef: Grates.... 3 units per unit of product 24 Ibs. per unit of product 2 units per unit of product 4 units per unit of product Stainless steel.. Burner subassemblies Shelves.. In manufacture of Master Chef: Grates... 6 units per unit of product 42 Ibs. per unit of product 4 units per unit of product 5 units per unit of product Stainless steel.. Burner subassemblies Shelves.. e. Anticipated purchase price for direct materials: $15 per unit Burner subassemblies $110 per unit Grates Stainless steel. S6 per Ib. Shelves.. $10 per unit f. Direct labor requirements: Backyard Chef: Stamping Department.. Forming Department. Assembly Department. 0.50 hr. at $17 per hr. 0.60 hr. at $15 per hr. 1.00 hr. at $14 per hr. Master Chef: Stamping Department.. 0.60 hr. at $17 per hr. 0.80 hr. at $15 per hr. 1.50 hrs. at $14 per hr. Forming Department.. Assembly Department. (Continued) İnstructions 1. Prepare a sales budget for July. 2. Prepare a production budget for July. 3. Prepare a direct materials purchases budget for July. 4. Prepare a direct labor cost budget for July.

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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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
150 units at $1,200 per unit
Master Chef.
Vermont:
Backyard Chef.
240 units at $750 per unit
Master Chef
110 units at $1,300 per unit
New Hampshire:
Backyard Chef.
Master Chef
360 units at $750 per unit
180 units at $1,400 per unit
b. Estimated inventories at July 1:
Direct materials:
Finished products:
Grates..
290 units
Backyard Chef
30 units
Stainless steel.
1,500 Ibs.
Master Chef.
32 units
Burner subassemblies
170 units
Shelves..
340 units
c. Desired inventories at July 31:
Direct materials:
Finished products:
Backyard Chef
Master Chef..
Grates.
340 units
40 units
Stainless steel.
1,800 lbs.
22 units
Burner subassemblies
155 units
Shelves..
315 units
d. Direct materials used in production:
In manufacture of Backyard Chef:
Grates....
3 units per unit of product
24 Ibs. per unit of product
2 units per unit of product
4 units per unit of product
Stainless steel..
Burner subassemblies
Shelves..
In manufacture of Master Chef:
Grates...
6 units per unit of product
42 Ibs. per unit of product
4 units per unit of product
5 units per unit of product
Stainless steel..
Burner subassemblies
Shelves..
e. Anticipated purchase price for direct materials:
$15 per unit
Burner subassemblies
$110 per unit
Grates
Stainless steel.
S6 per Ib.
Shelves..
$10 per unit
f. Direct labor requirements:
Backyard Chef:
Stamping Department..
Forming Department.
Assembly Department.
0.50 hr. at $17 per hr.
0.60 hr. at $15 per hr.
1.00 hr. at $14 per hr.
Master Chef:
Stamping Department..
0.60 hr. at $17 per hr.
0.80 hr. at $15 per hr.
1.50 hrs. at $14 per hr.
Forming Department..
Assembly Department.
(Continued)
Transcribed Image Text: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 150 units at $1,200 per unit Master Chef. Vermont: Backyard Chef. 240 units at $750 per unit Master Chef 110 units at $1,300 per unit New Hampshire: Backyard Chef. Master Chef 360 units at $750 per unit 180 units at $1,400 per unit b. Estimated inventories at July 1: Direct materials: Finished products: Grates.. 290 units Backyard Chef 30 units Stainless steel. 1,500 Ibs. Master Chef. 32 units Burner subassemblies 170 units Shelves.. 340 units c. Desired inventories at July 31: Direct materials: Finished products: Backyard Chef Master Chef.. Grates. 340 units 40 units Stainless steel. 1,800 lbs. 22 units Burner subassemblies 155 units Shelves.. 315 units d. Direct materials used in production: In manufacture of Backyard Chef: Grates.... 3 units per unit of product 24 Ibs. per unit of product 2 units per unit of product 4 units per unit of product Stainless steel.. Burner subassemblies Shelves.. In manufacture of Master Chef: Grates... 6 units per unit of product 42 Ibs. per unit of product 4 units per unit of product 5 units per unit of product Stainless steel.. Burner subassemblies Shelves.. e. Anticipated purchase price for direct materials: $15 per unit Burner subassemblies $110 per unit Grates Stainless steel. S6 per Ib. Shelves.. $10 per unit f. Direct labor requirements: Backyard Chef: Stamping Department.. Forming Department. Assembly Department. 0.50 hr. at $17 per hr. 0.60 hr. at $15 per hr. 1.00 hr. at $14 per hr. Master Chef: Stamping Department.. 0.60 hr. at $17 per hr. 0.80 hr. at $15 per hr. 1.50 hrs. at $14 per hr. Forming Department.. Assembly Department. (Continued)
İnstructions
1. Prepare a sales budget for July.
2. Prepare a production budget for July.
3. Prepare a direct materials purchases budget for July.
4. Prepare a direct labor cost budget for July.
Transcribed Image Text:İnstructions 1. Prepare a sales budget for July. 2. Prepare a production budget for July. 3. Prepare a direct materials purchases budget for July. 4. Prepare a direct labor cost budget for July.
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