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)	$400,000

1. Prepare a sales budget for March.

Bellaire Inc. Sales Budget For the First Quarter Ending March 3

	January	February	March	First Quarter
Estimated units sold	fill in the blank 9ed29cf19051fac_1	fill in the blank 9ed29cf19051fac_2	fill in the blank 9ed29cf19051fac_3	fill in the blank 9ed29cf19051fac_4
Selling price per unit	x$fill in the blank 9ed29cf19051fac_5	x$fill in the blank 9ed29cf19051fac_6	x$fill in the blank 9ed29cf19051fac_7	x$fill in the blank 9ed29cf19051fac_8
Total budgeted sales	$fill in the blank 9ed29cf19051fac_9	$fill in the blank 9ed29cf19051fac_10	$fill in the blank 9ed29cf19051fac_11	$fill in the blank 9ed29cf19051fac_12

2. Prepare a production budget for March.

Bellaire Inc. Production Budget For the First Quarter Ending March 3

	January	February	March	First Quarter
Estimated units soldEstimated units producedEstimated ending inventoryEstimated beginning inventorySelling price per unit	- Select -	- Select -	- Select -	- Select -
Desired ending inventoryDesired beginning inventoryEstimated ending inventoryEstimated beginning inventorySelling price per unit	- Select -	- Select -	- Select -	- Select -
Total units available for sale	fill in the blank 331ea902af80ff7_11	fill in the blank 331ea902af80ff7_12	fill in the blank 331ea902af80ff7_13	fill in the blank 331ea902af80ff7_14
Less estimated ending inventoryLess estimated beginning inventoryAdd estimated ending inventoryAdd estimated beginning inventorySelling price per unit	- Select -	- Select -	- Select -	- Select -
Total units to be produced	fill in the blank 331ea902af80ff7_20	fill in the blank 331ea902af80ff7_21	fill in the blank 331ea902af80ff7_22	fill in the blank 331ea902af80ff7_23

3. 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 f3c05effbfbb039_1	fill in the blank f3c05effbfbb039_2	fill in the blank f3c05effbfbb039_3	fill in the blank f3c05effbfbb039_4
Materials required per unit	xfill in the blank f3c05effbfbb039_5lb.	xfill in the blank f3c05effbfbb039_6lb.	xfill in the blank f3c05effbfbb039_7lb.	xfill in the blank f3c05effbfbb039_8lb.
Materials required for production	fill in the blank f3c05effbfbb039_9lbs.	fill in the blank f3c05effbfbb039_10lbs.	fill in the blank f3c05effbfbb039_11lbs.	fill in the blank f3c05effbfbb039_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 f3c05effbfbb039_18lbs.	fill in the blank f3c05effbfbb039_19lbs.	fill in the blank f3c05effbfbb039_20lbs.	fill in the blank f3c05effbfbb039_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 f3c05effbfbb039_27lbs.	fill in the blank f3c05effbfbb039_28lbs.	fill in the blank f3c05effbfbb039_29lbs.	fill in the blank f3c05effbfbb039_30lbs.
Cost per pound	x$fill in the blank f3c05effbfbb039_31	x$fill in the blank f3c05effbfbb039_32	x$fill in the blank f3c05effbfbb039_33	x$fill in the blank f3c05effbfbb039_34
Cost of direct materials to be purchased	$fill in the blank f3c05effbfbb039_35	$fill in the blank f3c05effbfbb039_36	$fill in the blank f3c05effbfbb039_37	$fill in the blank f3c05effbfbb039_38

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

5. Prepare a factory overhead cost budget for March.

Bellaire Inc. Factory Overhead Cost Budget For the First Quarter Ending March 31

	January	February	March	First Quarter
Variable factory overhead:
Budgeted direct labor hoursBudgeted variable factory overheadBudgeted fixed factory overheadDirect labor required per unitVariable factory overhead rate	- Select -hrs.	- Select -hrs.	- Select -hrs.	- Select -hrs.
Budgeted variable factory overheadBudgeted fixed factory overheadDirect labor required per unitDirect labor costVariable factory overhead rate	x$- Select -	x$- Select -	x$- Select -	x$- Select -
Budgeted variable factory overheadBudgeted fixed factory overheadDirect labor required per unitDirect labor costDirect labor hourly rate	$- Select -	$- Select -	$- Select -	$- Select -
Fixed factory overhead:
Budgeted fixed factory overheadDirect labor required per unitDirect labor costDirect labor hourly rateDirect labor hours	- Select -	- Select -	- Select -	- Select -
Total factory overhead cost	$fill in the blank ec0595f59fd806a_21	$fill in the blank ec0595f59fd806a_22	$fill in the blank ec0595f59fd806a_23	$fill in the blank ec0595f59fd806a_24