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

ID: 2329730 • Letter: S

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:

a. Estimated sales for July by sales territory:

b. Estimated inventories at July 1:

c. Desired inventories at July 31:

d. Direct materials used in production:

e. Anticipated purchase price for direct materials:

f. Direct labor requirements:

Required:

1. Prepare a sales budget for July.

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 Gourmet Grill Company Sales Budget For the Month Ending July 31 Unit Sales Volume Unit Selling Price Product and Area Total Sales Backyard Chef Maine Vermont New Hampshire Total Master Chef Maine Vermont New Hampshire Total Total revenue from sales

Explanation / Answer

Part 1

GOURMET GRILL COMPANY

Sales Budget

For the Month ending july 31

Part 2

GOURMET GRILL COMPANY

Production budget

For the Month ending july 31

Part 3

Grates

(units)

Stainless steel

(lbs.)

Burner sub-assemblies

(units)

Shelves

(units)

2760

(920*3)

22080

(920*24)

1840

(920*2)

3680

(920*4)

2580

(430*6)

18060

(430*42)

1720

(430*4)

2150

(430*5)

Part 4

GOURMET GRILL COMPANY

Direct labor cost budget

For the Month ending july 31

460

(920*0.5)

552

(920*0.6)

920

(920*1)

258

(430*0.6)

344

(430*0.8)

645

(430*1.50)

Product and Area Unit Sales Volume Unit Selling price Total sales Backyard Chef Maine 310 700 217000 Vermont 240 750 180000 Hampshire 360 750 270000 Total 910 667000 Master Chef: Maine 150 1200 180000 Vermont 110 1300 143000 Hampshire 180 1400 252000 Total 450 575000 Total revenues from sales 1242000
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