Budgeted income statement and supporting budgets for three months Bellaire Inc. gathered the following data for use in developing the budgets for the first quarter January, February, March) of its fiscal year: a. Estimated sales at $125 per unit: January 25,000 units February 30,000 units March 45,000 units April 50,000 units b. Estimated finished goods inventories: January 1 2,000 units January 31 10% of next month's sales February 28 10% of next month's sales March 31 10% of next month's sales C. Work in process inventories are estimated to be insignificant (zero). d. Estimated direct materials inventories: January 1 1,000 lbs. January 31 1,500 lbs. February 28 2,000 lbs. March 31 2,500 lbs. e. Manufacturing costs: e. Manufacturing costs: Per Unit $ 12 60 3 Direct materials (0.8 lb. per unit $15 per lb.) Direct labor (2.5 hrs. per unit x $24 per hr.) Variable factory overhead ($1.20 per direct labor hour) Fixed factory overhead ($200,000 per month, allocated using 40,000 units) Total per-unit manufacturing costs f. Selling expenses: 5 $80 $4 per unit Variable selling expenses Fixed selling expenses $150,000 Administrative expenses (all fixed costs) $400,000 160,000 2,400,000 X 360,000 760,000 Beginning finished goods inventory Cost of goods manufactured: Cost of finished goods available for sale x Cost of finished goods available for sale x 200,000 x 1 2,080,000 X X X X X X X X Cost of finished goods available for sale x 2,440,000 x x X Total cost of goods manufactured Cost of finished goods available for sale Budgeted fixed factory overhead x 2,178,571 X s V! X X 650,000 Cost of goods sold 2,828,571 7. Prepare a selling and administrative expenses budget for March. Enter all amounts as positive number. Bellaire Inc. Selling and Administrative Expenses Budget For the First Quarter Ending March 31 January February March Selling expenses: Variable selling expenses per unit sold x First Quarter X X X xx Fixed selling expenses X X$ X$ x$ X$ $ $ $ Total variable selling expenses Budgeted fixed administrative expenses x x x X X x Total selling expenses Administrative expenses: Budgeted fixed administrative expenses X Total selling and administrative expenses X 44 X $ Bellaire Inc. Budgeted Income Statement For the First Quarter Ending March 31 January February 3,125,000 3,750,000 March First Quarter 5,625,000 1,200,000 x Sales Cost of goods sold 2,828,571 x 3,243,913 x 4,510,000 x 10,582,484 x 296,429 X 506,087 x 1,115,000 x 1,917,516 x Gross profit Selling and administrative expenses: Administrative expenses x Administrative expenses bond $1 $ Total selling and administrative expenses Operating income $ TA