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: Maine: Backyard Chef 310 units at $700 per unit 150 units at Master Chef $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
I know it's correct. But I want to see the calculations worked out step by step.

Answer 1

Answer

--Working for calculation asked

	Grates	Stainless Steel	Burner Sub-	Shelves
	(units)	(lbs.)	assemblies	(units)
			(units)
Required units for production:
Backyard Chef [A]	920 units x 3	920 units x 24	920 units x 2	920 units x 4
Master Chef [B]	430 units x 6	430 units x 42	430 units x 4	430 units x 5
Desired inventory, [July 31 [ALREADY GIVEN IN DATA] [C]	340	1800	155	315
Total [D = A+B+C]	5,680	41,940	3,715	6,145
Estimated inventory, July 1 [ALREADY GIVEN IN DATA] [E]	-290	-1500	-170	-340
Total units to be purchased	5680 - 290	41940 - 1500	3715 - 170	6145 - 340
Unit price	15	6	110	10
Total direct materials to be purchased	5390 x 15	40440 x 6	3545 x 110	5805 x 10

--Note: Calculation of 920 units and 430 units

	Backyard Chef	Master Chef
Budgeted units to be sold	910	440
Desired ending inventory	40	22
Total needs	950	462
Beginning Inventory	(30)	(32)
Budgeted units to be produced	920	430