Question

PR 21-2A Sales, production, direct materials purchases, and direct labor cost budgets The budget director of Outdoor Chef Grill Company requests estimates of sales, produc- tion, and other operating data from the various administrative units every month. Selected information conceming sales and production for May 2012 is summarized as follows: a. Estimated sales for May by sales territory: 280 units at $750 per unit 250 units at $1,500 per unit Maine: Backyard Chef ........ Master Chef.... Vermont: Backyard Chef.. Master Chef.... New Hampshire: Backyard Chef... Master Chef... 210 units at $800 per unit 160 units at $1,600 per unit 305 units at $850 per unit 275 units at $1,700 per unit b. Estimated inventories at May 1: Direct materials: Grates.. . Stainless steel.................. Burner subassemblies .......... Shelves..... .. Finished products: Backyard Chef ............ Master Chef............. 36 units 18 units 300 units 1,800 lbs. 150 units 300 units c. Desired inventories at May 31: Finished products: Backyard Chef ............ Master Chef............... 31 units 23 units Direct materials: Grates... 320 units Stainless steel.................. 2.100 lbs. Burner subassemblies .......... 135 units ves. .. 285 units d. Direct materials used in production: 3 units per unit of product 24 lbs. per unit of product 2 units per unit of product 4 units per unit of product In manufacture of Backyard Chef: Grates... Stainless steel............... Burner subassemblies ....... Shelves... In manufacture of Master Chef: Grates... Stainless steel.............. Burner subassemblies .......... Shelves... 6 units per unit of product 42 lbs per unit of product 4 units per unit of product 5 units per unit of product

Answer 1

sales budget particolars ① Back yard chef > Maine unfts Amount (2) 280 vermont 210 2, 10,ooo (280X750) 1,68,000 (210 x 800) 2,59,250 (305 x 750) New Hampshire 305 Total 795 637 250 Master Chef - Maine 250 -> vermont 160 3,751000 (250 x 1500) 256 000 (160 x 16oo) 467500 (275X1200) ~ New Hampshire et 275 Todal 685 10,98,500 2 produc Hon budget Cunits) particolars Back yard chet master chef 795 685 Sales 31 23 36 18 H) Closing stock (-) opening stock Proch CHON 790 690

Direct material purchase Budget particolars Required Grates Cunits) Burner subassemblees Cunets) Shelves cunets) eppads fee (lbs) Pep 2370 18,960 1580 3160 Backyard chef (790x3) (790x2u) (790x2] (790x4) Master chef 3450 ulud (690x6) 28990 (690x842) 2760 (690x 4) (690x5) total consumption 6510 ufquo - u3uo 6610 300 1800 (2100) 150 (135) 300 (285) 4) closing stock (6) opening stock Stock Reasured to be purchased (In units) (In Amount) (320) 6490 103840 (0490X16) 476 40 4355 6625 238200 504375 53000 (49610x5) (4355x125) (6625x8)

Master chef (690 units) 9384 (552 x H) - lu, ugo direct labour cost Budget par fleolins Back yard clef (790 units) Stamping department 8058 (7908 0.60) = uzu (uzu x 17) . (690 X 0.80) - 552 forming department 8848 (632814) (790 x 0.807 = 632 (690x1.50) = 1035 » Assembly depavement 18960 (1580 x 12) (790 x 2) - 1580 (690x2.5) = 1725. Total a (2) 35,866 (1035814) 20700 (1925 X12) 44574.