DATA INPUT
July 5,000 desk-and-chair sets
August 6,000 desk-and-chair sets
September 7,500 desk-and-chair sets
Each desk-and chair set requires:
10 board feet of pine planks
1.5 hours of direct labor
Costs for material:
0.60$ per board foot
21.00$
per hour for direct-hour wages and fringe benefits
Division ends each month with enough wood to cover next
month’s production requirements of : 10%
Division ends each month with enough finished-goods inventory to cover
next month’s sales of: 20%
Selling price per set 60$
SOLUTION
1. Complete sales budget schedule:
Sales budget: July August September
2. Complete production budget schedule:
Production budget: July August September
Sales (sets) 5,000 6,000 7,500
Less: Projected beginning inventory
3. Complete raw-material purchases schedule:
Raw- material purchases: July August September
Planned production (sets) 5,200 6,300 7,500
Raw material required per set (board feet) 10 10 10
4. Complete direct-labor budget schedule:
Direct-labor budget: July August September
Planned production (sets) 5,200 6,300 7,500
Sales (sets) 5,000 6,000 7,500
