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 300,000 units 400,000 units July August 500,000 units 500,000 units September b. Estimated finished goods inventories: May 31 16,000 units June 30 July 31 5% of next month's sales 5% of next month's sales 5% of next month's sales August 31 c. Work in process inventories are estimated to be insignificant (zero). d. Estimated direct materials inventories: May 31 35,000 pounds 40,000 pounds June 30 July 31 August 31 45,000 pounds 50,000 pounds August 31 50,000 pounds e. Manufacturing costs: Per Unit Direct materials (1.5 lbs. per unit x $4 per lb.) Direct labor (0.4 hr. per unit x $25 per hr.) Variable factory overhead ($4 per direct labor hour) Fixed factory overhead ($1,200,000 per month allocated using 500,000 units) Total per-unit manufacturing costs $ 6.00 10.00 1.60 2.40 $20.00 f. Selling expenses: $3 per unit Variable selling expenses Fixed selling expenses Administrative expenses (all fixed costs) $800,000 $550,000 1. Prepare a sales budget for August Newport Inc. Sales Budget 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 Newport Inc. Cost of Goods Sold Budget For the First Quarter Ending August 31 June July August First Quarter Beginning finished goods inventory $ 320,000 $400,000 500,000 Cost of goods manufactured: Direct materials Direct labor 3,040,000 Factory overhead Total cost of goods manufactured Cost of finished goods available for sale Ending finished goods Inventory Cost of goods sold Feed 8. Prepare a budgeted Income statement with budgeted operating income for August. For those boxes in which you must enter subtracted numbers use a minus sign. Newport Inc. Budgeted Income Statement For the First Quarter Ending August 31 July First Quarter Sales 10,800,000 $14,400,000 18,000,000 $43,200,000 Cost of goods sold June August Gross profit Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Operating income