Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The
ID: 2598795 • 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 March is summarized as follows:
a. Estimated sales for March by sales territory:
b. Estimated inventories at March 1:
c. Desired inventories at March 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 March.
2. Prepare a production budget for March.
3. Prepare a direct materials purchases budget for March.
4. Prepare a direct labor cost budget for March.
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Maine: Backyard Chef 350 units at $800 per unit Master Chef 200 units at $1,400 per unit Vermont: Backyard Chef 400 units at $825 per unit Master Chef 240 units at $1,500 per unit New Hampshire: Backyard Chef 320 units at $850 per unit Master Chef 200 units at $1,600 per unitExplanation / Answer
Solution:-
1. Prepare a sales budget for March:-
2. Prepare a production budget for March:-
3. Prepare a direct materials purchases budget for March:-
4. Prepare a direct labor cost budget for March:-
Please Rate or comment if you have any doubt regarding this solution.
Gourmet Grill Company Sales Budget For the Month Ending March 31, Product and Area Unit Sales Volume Unit Selling Price Total Sales Backyard Chef: Maine 350 800 280,000 Vermont 400 825 330,000 New Hampshire 320 850 272,000 Total 1,070 882,000 Master Chef: Maine 200 1,400 280,000 Vermont 240 1,500 360,000 New Hampshire 200 1,600 320,000 Total 640 960,000 Total revenue from sales 1,710 1,842,000Related Questions
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