The budget director of Gourmet Grill Company requests estimates of sales...

The budget director of Gourmet Grill Company requests estimates of sales...

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
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