Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 36

Sales, production, direct materials purchases, and direct labor cost budgets
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:

b. Estimated inventories at February 1:

c. Desired inventories at February 28:

d. direct materials used in production:

e. Anticipated purchase price for direct materials:

f. Direct labor requirements:

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.