Budgeted Income Statement and Supporting Budgets The budget director of Gold Medal Athletic Co., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted Income statement for March a. Estimated sales for March: Batting helmet 1,200 units at $40 per unit Football helmet 6,500 units at $160 per unit D. Estimated inventories at March 1: Direct materials: Plastic 90 lbs. Foam lining 800 Finished products Batting helmet 40 units at $25 per unit Football helmet 240 units at $77 per unit c. Desired inventories March 311 Direct materials: Plastic 50 lbs Foam lining 65 lbs. Finished products: Batting helmet 50 units at $25 per unit Football helmet 220 units at $78 per unit d. Direct materials used in production OLMU PO d. Direct materials used in production: In manufacture of batting helmet: Plastic 1.2 lbs. per unit of product Foam lining 0.5 lb. per unit of product In manufacture of football helmet: Plastic 3.5 lbs. per unit of product Foam lining 1.5 lbs. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic $6 per lb. Foam lining $4 per lb. f. Direct labor requirements: Batting helmet: Molding Department 0.2 hr. at $20 per hr. Assembly Department 0.5 hr. at $14 per hr. Football helmet: Molding Department 0.5 hr. at $20 per hr. Assembly Department 1.8 hrs. at $14 per hr. g. Estimated factory overhead costs for March: Indirect factory wages $86,000 Depreciation of plant and equipment 12,000 Power and light 4,000 4,000 2,300 Power and light Insurance and property tax h. Estimated operating expenses for March: Sales salaries expense Advertising expense $184,300 87,200 Office salaries expense 32,400 Depreciation expense-office equipment 3,800 Telephone expense-selling 5,800 Telephone expense-administrative 1,200 Travel expense--selling 9,000 Office supplies expense 1,100 1,000 Miscellaneous administrative expense i. Estimated other revenue and expense for March: Interest revenue $940 872 Interest expense j. Estimated tax rate: 30% Required: 1. Prepare a sales budget for March. Enter all amounts as positive numbers. Gold Medal Athletic Co. Sales Budget For the Month Ending March 31 Required: 1. Prepare a sales budget for March. Enter all amounts as positive numbers. Gold Medal Athletic Co. Sales Budget For the Month Ending March 31 Unit Sales Unit Selling Volume Price Total Sales Batting helmet Football helmet Total revenue from sales 2. Prepare a production budget for March. For those boxes in which you must enter subtracted or negativ Gold Medal Athletic Co. Production Budget For the Month Ending March 31 2. Prepare a production budget for March. For those boxes in which you must enter subtracted or negative numbers Gold Medal Athletic Co. Production Budget For the Month Ending March 31 Units Batting helmet Football helmet 3. Prepare a direct materials purchases budget for March. For those boxes in which you must enter subtracted Gold Medal Athletic Co. Direct Materials Purchases Budget For the Month Ending March 31 Plastic Foam Lining Total Units required for production: Batting helmet Football helmet Desired units of inventory, March 31 Total units available Estimated units of inventory, March 1 Total units to be purchased Unit price Total direct materials to be purchased
