Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets….XLSX

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 2014 is summarized as follows:

a. Estimated sales for July by sales territory:


b. Estimated inventories at July 1: 


c. Desired inventories at July 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 July.

Gourmet Grill Company
Sales Budget
For the Month Ending July 31, 2014
Product and Area
Unit Sales
Volume
Unit Selling
Price
Total Sales
Backyard Chef:
 
Maine
 
Vermont

New Hampshire
 
Total
 
Master Chef:

Maine

Vermont
 
New Hampshire
 
Total
 
Total revenue from sales
 
2. Preparea production budget for July.

Gourmet Grill Company
Production Budget
For the Month Ending July 31, 2014
 
Units
 
Backyard Chef
Master Chef
Expected units to be sold
  
Plus desired inventory, July 31, 2014
 
Total

Less estimated inventory, July 1, 2014
 
Total units to be produced

3. Prepare a direct materials purchases budget for July.

Gourmet Grill Company
Direct Materials Purchases Budget
For the Month Ending July 31, 2014
 
Grates
(units)
Stainless Steel
(lbs.)
Burner Sub-
assemblies
(units)
Shelves
(units)
Total
Required units for production:
 
Backyard Chef
 
Master Chef
 
Plus desired inventory, July 31, 2014
 
Total
 
Less estimated inventory, July 1, 2014
 
Total units to be purchased
 
Unit price
 
Total direct materials to be purchased

4. Prepare a direct labor cost budget for July.

Gourmet Grill Company
Direct Labor Cost Budget
For the Month Ending July 31, 2014
 
Stamping 
Department
 
Forming Department
 
Assembly Department
Total
Hours required for production:
 
Backyard Chef
 
Master Chef
 
Total
 
Hourly rate 
 
Total direct labor cost
 
Powered by