11. PR.22.03B Budgeted Income Statement and Supporting Budgets 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: Batting helmet 1,200 units at $40 per unit Football helmet 6,500 units at $160 per unit b. Estimated inventories at March 1: Direct materials: Plastic Foam lining Finished products: Batting helmet Football helmet c. Desired inventories at March 31: Direct materials: Plastic Foam lining Finished products: Batting helmet 90 lbs. 80 lbs. 40 units at $25 per unit 240 units at $77 per unit 50 lbs. 65 lbs. 50 units at $25 per unit Football helmet 220 units at $78 per unit d. Direct materials used in production: In manufacture of batting helmet: Plastic 1.2 lbs. per unit of product Foam lining 0.5 lb. per unit of product In manufacture of football helmet: 5/10/22, 8:19 PM Plastic Foam lining 3.5 lbs. per unit of product 1.5 lbs. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic $6 per lb. Foam lining $4 per lb. f. Direct labor requirements: Batting helmet: Molding Department Assembly Department Football helmet: 0.2 hr. at $20 per hr. 0.5 hr. at $14 per hr. Molding Department Assembly Department g. Estimated factory overhead costs for March: Indirect factory wages $86,000 Depreciation of plant and equipment 12,000 0.5 hr. at $20 per hr. 1.8 hrs. at $14 per hr. Power and light 4,000 Insurance and property tax 2,300 h. Estimated operating expenses for March: Sales salaries expense $184,300 Advertising expense 87,200 Office salaries expense 32,400 Depreciation expense-office equipment 3,800 Telephone expense-selling 5,800 Telephone expense-administrative 1,200 Travel expense-selling 9,000 Office supplies expense 1,100 1,000 Miscellaneous administrative expense i. Estimated other revenue and expense for March: Interest revenue $940 Interest expense 872 J. Estimated tax rate: 30% Required: 1. Prepare a sales budget for March. Enter all amounts as positive numbers. Gold Medal Athletic Co. Sales Budget For the Month Ending March 31 Unit Sales Unit Selling Batting helmet Football helmet Total revenue from sales. Volume Price Total Sales $ 2. Prepare a production budget for March. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Gold Medal Athletic Co. Production Budget For the Month Ending March 31 Units Batting helmet Football helmet 3. Prepare a direct materials purchases budget for March. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Gold Medal Athletic Co. Direct Materials Purchases Budget For the Month Ending March 31 Units required for production: Batting helmet: Football helmet Desired units of inventory, March 311 Total units available. Estimated units of inventory, March 1 Total units to be purchased Unit price Total direct materials to be purchased Plastic Foam Lining Total $ $ 4. Prepare a direct labor cost budget for March. Enter all amounts as positive numbers. Gold Medal Athletic Co. Hours required for production: Batting helmet Direct Labor Cost Budget For the Month Ending March 31 Assembly Total Molding Department Department inntid-3469324 5/10/22, 8:19 PM Football helmet Total Hourly rate Total direct labor cost Cengage 5. Prepare a factory overhead cost budget for March. Gold Medal Athletic Co. Factory Overhead Cost Budget For the Month Ending March 31 Total factory overhead cost 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Gold Medal Athletic Co. Cost of Goods Sold Budget For the Month Ending March 31. Direct materials: Cost of direct materials available for use Cost of direct materials placed in production Total manufacturing costs Total work in process during period Cost of goods manufactured Cost of finished goods available for sale Cost of goods sold $ 7. Prepare a selling and administrative expenses budget for March. Gold Medal Athletic Co. Selling and Administrative Expenses Budget For the Month Ending March 31 Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total operating expenses 8. Prepare a budgeted income statement for March. Gold Medal Athletic Co. Budgeted Income Statement For the Month Ending March 31 Operating expenses: Total operating expenses Operating income Other revenue and expense: Income before income tax Net income $ $