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Category > Accounting Posted 22 Jul 2017 My Price 14.00

Chef Grill Company

The budget director of Outdoor Chef 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 October 2008 is summarized as follows:

a. Estimated sales for October by sales territory:

Maine:

 

Backyard Chef

4,500 units at $800 per unit

Master Chef

1,600 units at $1,600 per unit

Vermont:

 

Backyard Chef

3,800 units at $900 per unit

Master Chef

1,700 units at $1,450 per unit

New Hampshire:

 

Backyard Chef

4,200 units at $850 per unit

Master Chef

1,800 units at $1,700 per unit

b. Estimated inventories at October 1:

Direct materials:

 

Finished products:

 

Grates

1,200 units

Backyard Chef

1,600 units

Stainless steel

2,300 lbs.

Master Chef

500 units

Burner subassemblies

650 units

 

 

Shelves

500 units

 

 

c. Desired inventories at October 31:

Direct materials:

 

Finished products:

 

Grates

900 units

Backyard Chef

1,300 units

Stainless steel

2,000 lbs.

Master Chef

600 units

Burner subassemblies

800 units

 

 

Shelves

450 units

 

 

d. Direct materials used in production:

In manufacture of Backyard Chef:

 

Grates

3 units per unit of product

Stainless steel

25 lbs. per unit of product

Burner subassemblies

2 units per unit of product

Shelves

5 units per unit of product

In manufacture of Master Chef:

 

Grates

6 units per unit of product

Stainless steel

50 lbs. per unit of product

Burner subassemblies

4 units per unit of product

Shelves

6 units per unit of product

e. Anticipated purchase price for direct materials:

Grates

$18 per unit

Burner subassemblies

$115 per unit

Stainless steel

$5 per lb.

Shelves

$6 per unit

f. Direct labor requirements:

Backyard Chef:

 

Stamping Department

0.60 hour at $15 per hour

Forming Department

0.80 hour at $12 per hour

Assembly Department

1.50 hours at $9 per hour

Master Chef:

 

Stamping Department

0.80 hour at $15 per hour

Forming Department

1.60 hours at $12 per hour

Assembly Department

2.50 hours at $9 per hour

Instructions

1. Prepare a sales budget for October.

2. Prepare a production budget for October.

3. Prepare a direct materials purchases budget for October.

4. Prepare a direct labor cost budget for Oct

Answers

Maurice Tutor
(5)
Status NEW Posted 22 Jul 2017 11:07 PM My Price 14.00

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