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Argosy University/ Phoniex University/
Nov-2005 - Oct-2011

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Professor
Phoniex University
Oct-2001 - Nov-2016

Category > Accounting Posted 08 Aug 2017 My Price 12.00

Royal Furniture Company

Sales, production, direct materials purchases, and direct labor cost budgets OBJ. 4

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 2016 is summarized as follows:

a. Estimated sales of King and Prince chairs for February by sales territory:

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 . . . . . . . . . . . . . . . . . . .	420 sq. yds.	Finished products: King. . . . . . . . . . . . . . . . . . . .	90 units
Wood . . . . . . . . . . . . . . . . . . .	580 linear ft.	Prince . . . . . . . . . . . . . . . . . .	25 units
Filler . . . . . . . . . . . . . . . . . . . .	250 cu. ft.
Springs . . . . . . . . . . . . . . . . . .	660 units

c. Desired inventories at February 28:

Direct materials: Finished products:

Fabric . . . . . . . . . . . . . . . . . . . . . . 390 sq. yds. King. . . . . . . . . . . . . . . 80 units

Wood . . . . . . . . . . . . . . . . . . . . . . 650 linear ft. Prince . . . . . . . . . . . . . 35 units Filler . . . . . . . . . . . . . . . . . . . . . . . 300 cu. ft.

Springs . . . . . . . . . . . . . . . . . . . . . 540 units

d. Direct materials used in production:

In manufacture of King:

Fabric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.0 sq. yds. per unit of product

Wood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 linear ft. per unit of product

Filler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2 cu. ft. per unit of product

Springs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 units per unit of product In manufacture of Prince:

Fabric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.0 sq. yds. per unit of product

Wood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 linear ft. per unit of product

Filler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 cu. ft. per unit of product

Springs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 units per unit of product

e. Anticipated purchase price for direct materials:

Fabric . . . . . . . . . . . . . . . . . . . . $12.00 per sq. yd. Filler . . . . . . . . . . . . . . . . . . . $3.00 per cu. ft.

Wood . . . . . . . . . . . . . . . . . . . . 7.00 per linear ft. Springs . . . . . . . . . . . . . . . . . 4.50 per unit

f. Direct labor requirements:

King:

Framing Department.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 hrs. at $12 per hr.

Cutting Department. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 hr. at $14 per hr.

Upholstery Department. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8 hr. at $15 per hr.

Prince:

Framing Department.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0 hr. at $12 per hr.

Cutting Department. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 hr. at $14 per hr.

Upholstery Department. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6 hr. at $15 per hr.

instructions

1. Prepare a sales budget for February.

2. Prepare a production budget for February.

3. Prepare a direct materials purchases budget for February.

4. Prepare a direct labor cost budget for February.

Answers

Maurice Tutor

(5)

Status NEW Posted 08 Aug 2017 05:08 PM My Price 12.00

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