Budgeted income statement and supporting budgets for three months Newport Inc. gathered the following data for use in developing the budgets for the first quarter June, July, August) of its fiscal year: a. Estimated sales at $36 per unit: June July 300,000 units 400,000 units 500,000 units 500,000 units August September b. Estimated finished goods inventories: May 31 June 30 July 31 August 31 16,000 units 5 % of next month's sales 5% of next month's sales 5% of next month's sales c. Work in process inventories are estimated to be insignificant (zero). d. Estimated direct materials inventories: May 31 June 30 July 31 August 31 35,000 pounds 40,000 pounds 45,000 pounds 50,000 pounds e. Manufacturing costs: Per Unit $ 6.00 Direct materials (1.5 lbs. per unit x $4 per lb.) Direct labor (0.4 hr. per unit x $25 per hr.) 10.00 Variable factory overhead ($4 per direct labor hour) 1.60 2.40 Fixed factory overhead ($1,200,000 per month allocated using 500,000 units) Total per-unit manufacturing costs $20.00 f. Selling expenses: Variable selling expenses $3 per unit $800,000 Fixed selling expenses Administrative expenses (all fixed costs) $550,000 1. Prepare a sales budget for August. Newport Inc. Sales Budget For the First Quarter Ending August 31 June July August First Quarter Estimated units sold Selling price per unit x$ Total budgeted sales 2. Prepare a production budget for August. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Newport Inc. Production Budget For the First Quarter Ending August 31 June July August First Quarter Total units available for sale Total units to be produced 3. Prepare a direct materials purchases budget for August. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Newport Inc. Direct Materials Purchases Budget For the First Quarter Ending August 31 June July August First Quarter Units to be produced Materials required per unit Materials required for production lbs. Total materials available for use bs. Total materials to be purchased lbs. lbs. lbs. Cost per pound Cost of direct materials to be purchased $1 4. Prepare a direct labor cost budget for August. Newport Inc. Direct Labor Cost Budget For the First Quarter Ending August 31 June July August First Quarter x a hr. Ihrs. hr. Thrs. 0 hr. Thrs. hr. Thrs. 5. Prepare a factory overhead cost budget for August. Newport Inc. Factory Overhead Cost Budget For the First Quarter Ending August 31 June July August First Quarter Variable factory overhead: 1 hrs. T hrs. T hrs. hrs. Fixed factory overhead: a 2888 Total factory overhead cost $ 6. Prepare a cost of goods sold budget for August. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Newport Inc. Cost of Goods Sold Budget For the First Quarter Ending August 31 July August June First Quarter Beginning finished goods inventory Cost of goods manufactured: Total cost of goods manufactured $ 7. Prepare a selling and administrative expenses budget for August. Enter all amounts as positive number. Newport Inc. Selling and Administrative Expenses Budget For the First Quarter Ending August 31 June July August First Quarter Selling expenses: Total variable selling expenses Total selling expenses Administrative expenses: Total selling and administrative expenses $ 8. Prepare a budgeted income statement with budgeted operating income for August. For those boxes in which you must enter subtracted or negative numbers use a minus sign. | Newport Inc. Budgeted Income Statement For the First Quarter Ending August 31 June July August First Quarter Gross profit Selling and administrative expenses: Total selling and administrative expenses