Direct Materials Purchases Budget by alq12320

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Problem 5-2A

1.

                            SUMMERTIME GRILL COMPANY
                                     Sales Budget
                           For the Month Ending May 31, 2003
                                      Unit Sales       Unit Selling
Product and Area                       Volume             Price               Total Sales
Backyard Chef:
  Maine
  Vermont
  New Hampshire
     Total
Master Chef
  Maine
  Vermont
  New Hampshire
     Total
Total revenue from sales



2.

                            SUMMERTIME GRILL COMPANY
                                   Production Budget
                           For the Month Ending May 31, 2003
                                                                      Units

                                                     Backyard Chef            Master Chef
Expected units to be sold
Desired inventory, May 31, 2003
Total
Estimated inventory, May 1, 2003
Total units to be produced
3.

                                          SUMMERTIME GRILL COMPANY
                                          Direct Materials Purchases Budget
                                         For the Month Ending May 31, 2003
                                                             Direct Materials
                                                                        Burner Sub-
                                                   Stainless Steel      assemblies
                                  Grates (units)         (lbs.)            (units)    Shelves (units)   Total
Required units for production:
  Backyard Chef
  Master Chef
Plus desired inventory,
    May 31, 2003
Total
Less estimated inventory,
    May 1, 2003
Total units to be purchased
Unit price
Total direct materials to be
    purchased




4.

                                  SUMMERTIME GRILL COMPANY
                                       Direct Labor Cost Budget
                                 For the Month Ending May 31, 2003
                                     Stamping           Forming         Assembly
                                   Department         Department       Department         Total
Hours required for production:
 Backyard Chef
 Master Chef
   Total
Hourly Rate
Total direct labor cost
The budget director of Summertime Grill Company requests estimates of sales, production, and other
operating data from various administrative units every month. Selected information concerning sales
and production for May 2003 is summarized as follows:

a. Estimated sales for May by sales territory:

Maine:
Backyard Chef                 3500 units at $               550 per unit
Master Chef                   1800 units at $              1300 per unit

Vermot:
Backyard Chef                 2800 units at $               500 per unit
Master Chef                   1500 units at $              1200 per unit

New Hampshire:
Backyard Chef                 4000 units at $               600 per unit
Master Chef                   2900 units at $              1500 per unit

b. Estimated inventories at May 1:

Direct materials:                         1000     units
Grates                                    2500     lbs.
Stainless steel                            600     units
Burner subassemblies                       400     units
Shelves

Finished products:
Backyard Chef                             1500 units
Master Chef                                400 units

c. Desired inventories at May 31:

Direct materials:
Grates                                     800     units
Stainless steel                           1900     lbs.
Burner subassemblies                       800     units
Shelves                                    480     units

Finished products:
Backyard Chef                             1200 units
Master Chef                                500 units

d. Direct materials used in production:

In manufacture of Backyard Chef:
Grates                                       2     units per unit of product
Stainless steel                             25     lbs. 'per unit of product
Burner subassemblies                         1     units per unit of product
Shelves                                      2     units per unit of product

In manufacture of Master Chef:
Grates                                           6 units per unit of product
Stainless steel                             65 lbs. 'per unit of product
Burner subassemblies                         4 units per unit of product
Shelves                                      3 units per unit of product

e. Anticipated purchase price for direct materials:

Grates                  $                   15   per unit
Stainless steel         $                    3   per lb.
Burner subassemblies    $                   72   per unit
Shelves                 $                    7   per unit

f. Direct labor requirements:

Backyard Chef:
Stamping Department                        0.50 hours at $         12 per hour
Forming Department                         0.75 hours at $         10 per hour
Assembly Department                        1.50 hours at $          9 per hour

Master Chef:
Stamping Department                        0.60 hours at $         12 per hour
Forming Department                         1.50 hours at $         10 per hour
Assembly Department                        2.50 hours at $          9 per hour

Instructions
1. Prepare a sales budget for May
2. Prepare a production budget for May
3. Prepare a direct materials purchases budget for May
4. Prepare a direct labor cost budget for May

								
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