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 $12,000$ units

January $3110\%$ of next month$$s sales

February $2810\%$ of next month$$s sales

March $3110\%$ of next month$$s sales

c$.$ Work in process inventories are estimated to be insignificant $($zero$).$

d$.$ Estimated direct materials inventories:

January $11,000$ lbs$.$

January $311,500$ lbs$.$

February $282,000$ lbs$.$

March $312,500$ lbs$.$

e$.$ Manufacturing costs:

Per Unit

Direct materials $(0\mathrm{.}8$ lb$.$ per unit $\backslash$times $$15$ per lb$.)$ $ $12$

Direct labor $(2\mathrm{.}5$ hrs$.$ per unit $\backslash$times $$24$ per hr$.)60$

Variable factory overhead $($$$1\mathrm{.}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$)$ $$400,000$

Prepare a cost of goods sold budget for March.

Bellaire Inc.

Cost of Goods Sold Budget

For the First Quarter Ending March $31$

January February March First Quarter

Beginning finished goods inventory $fill in the blank $2$e$7$eb$0$fc$7$f$81055\_1$ $fill in the blank $2$e$7$eb$0$fc$7$f$81055\_2$ $fill in the blank $2$e$7$eb$0$fc$7$f$81055\_3$ $fill in the blank $2$e$7$eb$0$fc$7$f$81055\_4$

Cost of goods manufactured:

Cost of finished goods available for saleDirect materialsDirect laborEnding finished goods inventoryFactory overhead

$$-$ Select $-$ $$-$ Select $-$ $$-$ Select $-$ $$-$ Select $-$

Cost of finished goods available for saleDirect laborEstimated units soldEnding finished goods inventoryFactory overhead

$-$ Select $--$ Select $--$ Select $--$ Select $-$

Cost of finished goods available for saleDesired ending inventoryEstimated units soldEnding finished goods inventoryFactory overhead

$-$ Select $--$ Select $--$ Select $--$ Select $-$

Total cost of goods manufactured $fill in the blank $2$e$7$eb$0$fc$7$f$81055\_20$ $fill in the blank $2$e$7$eb$0$fc$7$f$81055\_21$ $fill in the blank $2$e$7$eb$0$fc$7$f$81055\_22$ $fill in the blank $2$e$7$eb$0$fc$7$f$81055\_23$

Cost of finished goods available for saleDesired ending inventoryEstimated units soldEnding finished goods inventoryVariable factory overhead rate

$$-$ Select $-$ $$-$ Select $-$ $$-$ Select $-$ $$-$ Select $-$

Budgeted fixed factory overheadDesired ending inventoryEstimated units soldEnding finished goods inventoryVariable factory overhead rate

$-$ Select $--$ Select $--$ Select $--$ Select $-$

Budgeted fixed factory overheadCost of goods soldDirect labor hoursEstimated units soldVariable factory overhead rate

$$-$ Select $-$ $$-$ Select $-$ $$-$ Select $-$ $$-$ Select $-$

Feedback

The cost of goods sold budget combines the budgeted costs from the direct labor, direct materials, and factory overhead budgets with estimated beginning and ending inventory to estimate a total cost of goods sold.

$7.$ 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 First Quarter

Selling expenses:

Budgeted sales unitsBudgeted fixed administrative expensesDirect materialsVariable selling expenses per unit soldFixed selling expenses

$-$ Select $--$ Select $--$ Select $--$ Select $-$

Budgeted fixed administrative expensesDirect laborDirect materialsVariable selling expenses per unit soldFixed selling expenses

x$$-$ Select $-$ x$$-$ Select $-$ x$$-$ Select $-$ x$$-$ Select $-$

Total variable selling expenses $fill in the blank $6$dd$82$ff$64$f$84041\_11$ $fill in the blank $6$dd$82$ff$64$f$84041\_12$ $fill in the blank $6$dd$82$ff$64$f$84041\_13$ $fill in the blank $6$dd$82$ff$64$f$84041\_14$

Budgeted fixed administrative expensesCost of goods soldDirect laborDirect materialsFixed selling expenses

$-$ Select $--$ Select $--$ Select $--$ Select $-$

Total selling expenses $fill in the blank $6$dd$82$ff$64$f$84041\_20$ $fill in the blank $6$dd$82$ff$64$f$84041\_21$ $fill in the blank $6$dd$82$ff$64$f$84041\_22$ $fill in the blank $6$dd$82$ff$64$f$84041\_23$

Administrative expenses:

Budgeted fixed administrative expensesCost of goods soldCost of finished goods available for saleDirect laborDirect materials

$-$ Select $--$ Select $--$ Select $--$ Select $-$

Total selling and administrative expenses $fill in the blank $6$dd$82$ff$64$f$84041\_29$ $fill in the blank $6$dd$82$ff$64$f$84041\_30$ $fill in the blank $6$dd$82$ff$64$f$84041\_31$ $fill in the blank $6$dd$82$ff$64$f$84041\_32$

Feedback

Estimated sales from the sales budget, estimated cost of goods sold from the cost of goods sold budget, and estimated selling and administrative expenses from the selling and administrative expense budget are used to prepare a budgeted income statement.

$8.$ Prepare a budgeted income statement with budgeted operating income for March.

Bellaire Inc.

Budg