Solved: The budget director of Outdoor Chef Grill Company

requests estim
The budget director of Outdoor Chef Grill Company requests estim

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:

c. Desired inventories at October 31:

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

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 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 forOctober.

The budget director of Outdoor Chef Grill Company requests estim

ANSWER
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