0.50 hr. at $14 per hr. Wormy spare Assembly Department. Football helmet: Molding Department Assembly Department 0.50 hr. at $20 per hr. 1.80 hrs. at $14 per hr g. Estimated factory overhead costs for March: Indirect factory wages Depreciation of plant and equipment $86,000 12,000 Power and light Insurance and property tax $4,000 2.300 h. Estimated operating expenses for March: Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense-selling Office supplies expense Miscellaneous administrative expense $184,300 87,200 32,400 3,800 5,800 1,200 9,000 1,100 1,000 i. Estimated other income and expense for March: Interest revenue Interest expense $940 872 j. Estimated tax rate: 30% Instructions 1. Prepare a sales budget for March. 2. Prepare a production budget for March. 3. Prepare a direct materials purchases budget for March. 4. Prepare a direct labor cost budget for March. Answer + 5. Prepare a factory overhead cost budget for March. 6. Prepare a cost of goods sold budget for March. Work in process at the beginning of March is estimated to be $15,300, and work in process at the end of March is desired to be $14,800. 7. Prepare a selling and administrative expenses budget for March. 8. Prepare a budgeted income statement for March. Obj. 4 The budget director of Gold Medal Athletic Co. with the assistance of the controller, treasurer, production manager and sales manager, has gathered the following data for use in developing the budgeted income statement for March: a. Estimated sales for March: Excel Batting helmet.. Football helmet 1,200 units at $40 per unit 6,500 units at $160 per unit b. Estimated inventories at March 1: + Direct materials: Plastic.. Foam lining... 90 lb. 80 lb. Finished products: Batting helmet........ Football helmet.... 40 units at $25 per unit 240 units at $77 per unit c. Desired inventories at March 31: + Direct materials: Plastic.. Foam lining 50 lb. 65 lb. Finished products: Batting helmet. Football helmet 50 units at $25 per unit 220 units at $78 per unit d. Direct materials used in production: In manufacture of batting helmet: Plastic.. Foam lining.. In manufacture of football helmet: Plastic... Foam lining. 1.20 lb. per unit of product 0.50 lb, per unit of product 3.50 lb, per unit of product 1.50 lb. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic.. Foam lining $6.00 per lb. $4.00 per lb. f. Direct labor requirements: 0.20 hr. at $20 per hr. 0.50 hr. at $14 per hr. Batting helmet: Molding Department Assembly Department.. Football helmet: Molding Department. Assembly Department 0.50 hr. at $20 per hr. 1.80 hrs. at $14 per hr g. Estimated factory overhead costs for March: Indirect factory wade $86.00 Power and lint $4.000 GOLD MEDAL ATHLETIC CO. Cost of Goods Sold Budget For the Month Ending March 31 S 19,480 s 15,300 Finished goods inventory, March 1 Work in process, March 1 Direct materials: Direct materials inventory, March 1 Direct materials purchases Cost of direct materials available for use Direct materials inventory, March 1 Cost of direct materials placed in production Direct labor Factory overhead Total manufacturing costs Total work in process during period Work in process, March 31 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, March 31 Cost of goods sold Supporting calculations: $ 860 185,792 $ 186,652 560 S 186,092 241,406 104,300 531,798 $ 547,098 14,800 532,298 $ 551,778 18,410 $ 533,368 Units Cost Total Finished goods inventory, March 1: Batting helmet Football helmet Total Finished goods inventory, March 31: Batting helmet Football helmet Total Direct materials inventory, March 1 Plastic Foam lining Total Direct materials inventory, March 31 Plastic Foam lining Total