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 months sales
February 28	10%	of next months sales
March 31	10%	of next months 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:

	Per Unit
Direct materials (0.8 lb. per unit $15 per lb.)	$ 12
Direct labor (2.5 hrs. per unit $24 per hr.)	60
Variable factory overhead ($1.20 per direct labor hour)	3
Fixed factory overhead ($200,000 per month, allocated using 40,000 units)	5
Total per-unit manufacturing costs	$80

f. Selling expenses:

Variable selling expenses

$4

per unit

Fixed selling expenses

$150,000

Administrative expenses (all fixed costs)

Prepare a direct materials purchases budget for March.

Bellaire Inc. Direct Materials Purchases Budget For the First Quarter Ending March 31

	January	February	March	First Quarter
Units to be produced	fill in the blank df8d0ffdefd006b_1	fill in the blank df8d0ffdefd006b_2	fill in the blank df8d0ffdefd006b_3	fill in the blank df8d0ffdefd006b_4
Materials required per unit	xfill in the blank df8d0ffdefd006b_5lb.	xfill in the blank df8d0ffdefd006b_6lb.	xfill in the blank df8d0ffdefd006b_7lb.	xfill in the blank df8d0ffdefd006b_8lb.
Materials required for production	fill in the blank df8d0ffdefd006b_9lbs.	fill in the blank df8d0ffdefd006b_10lbs.	fill in the blank df8d0ffdefd006b_11lbs.	fill in the blank df8d0ffdefd006b_12lbs.
Desired ending inventoryDesired beginning inventoryEstimated beginning inventoryEstimated ending inventorySelling price per unit	- Select -lbs.	- Select -lbs.	- Select -lbs.	- Select -lbs.
Total materials available for use	fill in the blank df8d0ffdefd006b_18lbs.	fill in the blank df8d0ffdefd006b_19lbs.	fill in the blank df8d0ffdefd006b_20lbs.	fill in the blank df8d0ffdefd006b_21lbs.
Less estimated ending inventoryLess estimated beginning inventoryAdd estimated ending inventoryAdd estimated beginning inventorySelling price per unit	- Select -lbs.	- Select -lbs.	- Select -lbs.	- Select -lbs.
Total materials to be purchased	fill in the blank df8d0ffdefd006b_27lbs.	fill in the blank df8d0ffdefd006b_28lbs.	fill in the blank df8d0ffdefd006b_29lbs.	fill in the blank df8d0ffdefd006b_30lbs.
Cost per pound	x$fill in the blank df8d0ffdefd006b_31	x$fill in the blank df8d0ffdefd006b_32	x$fill in the blank df8d0ffdefd006b_33	x$fill in the blank df8d0ffdefd006b_34
Cost of direct materials to be purchased	$fill in the blank df8d0ffdefd006b_35	$fill in the blank df8d0ffdefd006b_36	$fill in the blank df8d0ffdefd006b_37	$fill in the blank df8d0ffdefd006b_38

Feedback

The direct materials cost budget, the direct labor cost budget, and the factory overhead budget each use the level of production from the production budget to estimate costs.

4. Prepare a direct labor cost budget for March.

Bellaire Inc. Direct Labor Cost Budget For the First Quarter Ending March 31

	January	February	March	First Quarter
Units to be producedDirect labor required per unitDirect labor hours required for productionDirect labor hourly rateDirect labor cost	- Select -	- Select -	- Select -	- Select -
Direct labor required per unitDirect labor hours required for productionDirect labor hourly rateDirect labor costEstimated units sold	x- Select -hrs.	x- Select -hrs.	x- Select -hrs.	x- Select -hrs.
Direct labor hours required for productionDirect labor hourly rateDirect labor costEstimated units soldSelling price per unit	- Select -hrs.	- Select -hrs.	- Select -hrs.	- Select -hrs.
Desired ending inventoryDirect labor hourly rateDirect labor costEstimated units soldSelling price per unit	x$- Select -	x$- Select -	x$- Select -	x$- Select -
Desired ending inventoryDesired beginning inventoryDirect labor costEstimated units soldSelling price per unit	$- Select -