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.
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.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps