Budgeted Income Statement and Sporting Budgets The budget director of terms Inc., the stance of the controllerar production manage and sales manager, has gathered the following data for use in developing the used income statement for a a. Estimated sales for May Bicyde helmet 7.500 i 24 per unit Motorcycle helmet 5,000 $175 b. Estimated Inventaries at May 1: Direct materials: Fished products Plastic Bicycle helmet 200 units 15 per Foam lining Motorcycle helmet 100 unitats per c. Desired inventaries at May 31: Direct materials Fished products Plastic 2,000 lbs. Bicydet 400 tot 15 per Foaming 800 Motorcycle helmets 1100 d. Direct materials used in production In mancture of Bedeht: 0.90 . per unit of product Foam lining 0.20 lb. per unit of product tin manufacture of motorcycle helmet Maste 3.50 .serunt of product Foamining 140 lbs. per unit of product Add cost of purchases and being and ending inventory of direct me Hati eBook Calculator "f. Direct labor requirements: Bicycle helmet: Molding Department 0.30 hr. at $15 per hr. Assembly Department 0.10 hr. at $14 per hr. Motorcycle helmet: Molding Department 0.50 hr. at $15 per hr. Assembly Department 0.40 hr. at $14 per hr. g. Estimated factory overhead costs for May: Indirect factory wages $125,000 Power and light $23,000 Depreciation of plant and equipment 45,000 Insurance and property tax 11,000 h. Estimated operating expenses for May: Sales salaries expense $175,000 Advertising expense 120,000 Office salaries expense 92,000 Depreciation expense-office equipment 6,000 Miscellaneous expense-selling 5,000 3,000 Utilities expense-administrative Travel expense--selling 50,000 2,500 Office supplies expense Miscellaneous administrative expense 1,500 i. Estimated other income and expense for May: Interest revenue $14,560 Interest expense 3,000 j. Estimated tax rate: 25% Calculator ogress false 6. Prepare a cost of goods sold budget for May. Work in process at the beginning of May is estimated to Jupiter Helmets Inc. Cost of Goods Sold Budget For the Month Ending May 31 Finished goods inventory, May 1 $4,200, and work in process the end of May is desired to be 3.00 Work in process inventory, May 1 12.000 4.700 6,980 9.520 Direct materials: Direct materials inventory, May 1 Direct materials purchases Cost of direct materials available for use Less: Direct materials inventory, May 31 Cost of direct materials placed in production Direct labor Factory overhead Total manufacturing costs Total work in process during period Less: Work in process inventory, May 21 Cost of goods manufactured Cost of finished goods available for sale Less: Finished goods inventory, May 31 Cost of goods sold 204.000 2.00 Oh My Add the beginning finished goods inventory to the beginning work in process to the direct materace s predator finished goods inventory from this amount Check My Work 8. Prepare a budgeted income statement for May. Jupiter Helmets Inc. Budgeted Income Statement For the Month Ending May 31 Revenue from sales Cost of goods sold Gross profit Operating expenses: Selling expenses 350,000 Administrative expenses 105,000 y Total operating expenses 455,000 Income from operations Other income: Interest revenue Other expenses: Interest expense 14,560 3,000 11,560 Income before income tax Income tax expense Net income Budgeted Income Statement and Sporting Budgets The budget director of terms Inc., the stance of the controllerar production manage and sales manager, has gathered the following data for use in developing the used income statement for a a. Estimated sales for May Bicyde helmet 7.500 i 24 per unit Motorcycle helmet 5,000 $175 b. Estimated Inventaries at May 1: Direct materials: Fished products Plastic Bicycle helmet 200 units 15 per Foam lining Motorcycle helmet 100 unitats per c. Desired inventaries at May 31: Direct materials Fished products Plastic 2,000 lbs. Bicydet 400 tot 15 per Foaming 800 Motorcycle helmets 1100 d. Direct materials used in production In mancture of Bedeht: 0.90 . per unit of product Foam lining 0.20 lb. per unit of product tin manufacture of motorcycle helmet Maste 3.50 .serunt of product Foamining 140 lbs. per unit of product Add cost of purchases and being and ending inventory of direct me Hati eBook Calculator "f. Direct labor requirements: Bicycle helmet: Molding Department 0.30 hr. at $15 per hr. Assembly Department 0.10 hr. at $14 per hr. Motorcycle helmet: Molding Department 0.50 hr. at $15 per hr. Assembly Department 0.40 hr. at $14 per hr. g. Estimated factory overhead costs for May: Indirect factory wages $125,000 Power and light $23,000 Depreciation of plant and equipment 45,000 Insurance and property tax 11,000 h. Estimated operating expenses for May: Sales salaries expense $175,000 Advertising expense 120,000 Office salaries expense 92,000 Depreciation expense-office equipment 6,000 Miscellaneous expense-selling 5,000 3,000 Utilities expense-administrative Travel expense--selling 50,000 2,500 Office supplies expense Miscellaneous administrative expense 1,500 i. Estimated other income and expense for May: Interest revenue $14,560 Interest expense 3,000 j. Estimated tax rate: 25% Calculator ogress false 6. Prepare a cost of goods sold budget for May. Work in process at the beginning of May is estimated to Jupiter Helmets Inc. Cost of Goods Sold Budget For the Month Ending May 31 Finished goods inventory, May 1 $4,200, and work in process the end of May is desired to be 3.00 Work in process inventory, May 1 12.000 4.700 6,980 9.520 Direct materials: Direct materials inventory, May 1 Direct materials purchases Cost of direct materials available for use Less: Direct materials inventory, May 31 Cost of direct materials placed in production Direct labor Factory overhead Total manufacturing costs Total work in process during period Less: Work in process inventory, May 21 Cost of goods manufactured Cost of finished goods available for sale Less: Finished goods inventory, May 31 Cost of goods sold 204.000 2.00 Oh My Add the beginning finished goods inventory to the beginning work in process to the direct materace s predator finished goods inventory from this amount Check My Work 8. Prepare a budgeted income statement for May. Jupiter Helmets Inc. Budgeted Income Statement For the Month Ending May 31 Revenue from sales Cost of goods sold Gross profit Operating expenses: Selling expenses 350,000 Administrative expenses 105,000 y Total operating expenses 455,000 Income from operations Other income: Interest revenue Other expenses: Interest expense 14,560 3,000 11,560 Income before income tax Income tax expense Net income