Question

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

The budget director of Royal Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for February is summarized as follows:

Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of Royal Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for February is summarized as follows: a. Estimated sales of King and Prince chairs for February by sales teritory: Northern Domestic: King 610 units at $780 per unit Prince 750 units at $550 per unit Southern Domestic: King 340 units at $780 per unit Prince 440 units at $550 per unit International King 360 units at $850 per unit Prince 290 units at $600 per unit b. Estimated inventories at February 1: Direct materials Fabric Wood Filler Springs 420 sq. yds. 580 linear ft. 250 cu. ft. 660 units Finished products: King 90 units Prince 25 units

Answer 1

Royal Furniture Company Sales Budget For the Month Ending February 28 Units Sales Volume Unit Selling Price Product and Area Total Sales King: - Northern Domestic 610 340 360 780475,800 780265,200 306,000 1,047,000 Southern Domestic - International Total 850 Prince: - Northern Domestic 750 440 290 550412,500 550242,000 174,000 828,500 Southern Domestic - International 600 Total Total Revenue from Sales 1,875,500

Royal Furniture Company Production For the Month Ending February 28 Units Particulars Kin Prince Budgeted No. of Units for Sale Add : Desired Ending Inventory 1,310 80 1,390 90 1,300 1,480 35 1,515 25 1,490 Less : Opening Inventory Budgeted Production in Units

Royal Furniture Company Direct Materials Purchases Budget For the Month Ending February 28 Direct Materials Particulars Filler Springs (Sq. Yds.) (Linear ft) (Cu. ft Units) Fabric Wood Total Required Units for Production: King Prince Desired Inventory, February 28 Total Estimated Inventory, February 1 Total Units to be purchased Unit Price Total Direct Materials to be purchased 390 14,150 420 13,730 12 164,760 7,80049,400 5,96038,740 650 88,790 580 88,210 7 617,470 5,46020,800 5,06617,880 540 10,82639,220 660 38,560 300 250 10,576 31,728 173,520 987,478

Royal Furniture Company Direct Labour Cost Budget For the Month Ending February 28 Direct Labour Particulars Framing Cutting Upholstery Dept Total Dept Dept Hours required for the production: King Prince 1,560 1,490 3,050 12 36,600 650 596 1,246 14 17,444 1,040 894 1,934 15 Total Hourly Rate Total Direct Labour Cost 29,01083,054

Answer 2

your estemanted invintority is -90, -25

estemanted invintority -420, -580, -250, -660