310018 Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budg

Question

310018 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 from the various administrative units every month. Selected information concerning sales and production fo is summarized as follows: a. Estimated sales for July by sales territory: Maine: 310 units at $700 per unit 150 units at $1,200 per unit Backyard Chef Master Chef Vermont: 240 units at $750 per unit 110 units at $1,300 per unit Backyard Chef Master Chef New Hampshire: Backyard Chef 360 units at $750 per unit 180 units at $1,400 per unit Master Chef b. Estimated inventories at July 1: Direct materials 290 units 1,500 lbs. Grates Stainless steel Burner subassemblies Shelves 170 units 340 units Finished products: 30 units 32 units Backyard Chef Master Chef c. Desired inventories at July 31: Direct materials: Grates 340 units 1,800 lbs Stainless steel Burner subassemblies 155 units 315 units Shelves Finished products: Backyard Chef 40 units 22 units Master Chef d. Direct materials used in production: In manufacture of Backyard Chef: Assignment Score: 20% Email Instructor Save and Exit Subm

Explanation / Answer

Answer 1. Gourmet Grill Company Sales Budget For the Month Ending July 31, 2016 Product & Area Unit Sale Volume Unit Selling Price Total Sales Backyard Chef: Maine                   310                       700              217,000 Vermont                   240                       750              180,000 New Hampshire                   360                       750              270,000 Total                   910              667,000 Master Chef: Maine                   150                   1,200              180,000 Vermont                   110                   1,300              143,000 New Hampshire                   180                   1,400              252,000 Total                   440              575,000 Total Revenue from Sales           1,242,000 Answer 2. Gourmet Grill Company Production Budget For the Month Ending July 31, 2016 Units Backyard Chef Master Chef Expected units to be sold                   910                       440 Plus: Desired Ending Inventory, July 31, 2016                      40                         22 Total                   950                       462 Less: Estimated Inventory, July 1, 2016                   (30)                       (32) Total Units to be Produced                   920                       430 Answer 3. Gourmet Grill Company Direct Materials Purchases Budget Grates (Units) Stainless Steel (lbs) Burner Sub-Assemblies (Units) Shelves (Units) Total Required Units for Production: Backyard Chef                2,760                 22,080                   1,840 3680 Master Chef                2,580                 18,060                   1,720 2150 Plus: Desired Ending Inventory, July 31, 2016                   340                   1,800                       155 315 Total                5,680                 41,940                   3,715                6,145 Less: Estimated Inventory, July 1, 2016                 (290)                 (1,500)                    (170) -340 Total Units to be Purchased                5,390                 40,440                   3,545                5,805 Unit Price                      15                           6                       110 10 Total Direct Materials to be purchased             80,850              242,640              389,950              58,050        771,490 Answer 4. Gourmet Grill Company Direct Labor Cost Budget For the Month Ending July 31, 2016 Stamping Department Forming Department Aassembly Department Total Hours Required for Production: Backyard Chef                   460                       552                       920 Master Chef                   258                       344                       645 Total                   718                       896                   1,565 Hourly Rate                      17                         15                         14 Total Direct Labor Cost             12,206                 13,440                 21,910              47,556

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