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: b. Estimated inventories at March 1: Direct materials: c. Desired inventories at March 31: Direct materials: 3 more Check My Work uses remairing In manufacture of batting heimet: Plastic 1.2 lbs. per unit of product Foam lining 0.5lb. 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. 3 more Check My Waik uses remaining. Assembly Department 1.8hrs. at $14 per hr. 9. Estimated factory overhead costs for March: Indirect factory wages Depreciation of plant and equipment $86,000 12,000 4,000 2,300 h. Estimated operating expenses for March: Sales salaries expense $184,300 Advertising expense 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 Miscellaneous administrative expense 1,000 1. Estimated other revenue and expense for March: Interest revenue Interest expense 1. Estimated tax rate: 30% Check My Work 3 more Check My Work uses remaining. 1. Prepare a sales budget for March. Enter all amounts as positive numbers. 2. Prepare a production budget for March. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 3. Prepare a direct materials purchases budget for March. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 4. Prepare a direct labor cost budget for March. Enter all amounts as positive numbers. 5. Prepare a factory overhead cost budget for March. 6. Prepare a cost of goods sold budget for March. Work in process at the beginning of March is estimated to be s15,300, and work in process at the end of March is desired to be 514,800 . For those boxes in which you must enter subtracted or negative numbers use a minus sign. Cost of direct materials available for use Cost of direct materials placed in production Total manufacturing costs Total work in process during period Cost of goods manufactured Cost of finished goods avallable for sale Cost of goods sold 7= 8. Prepare a budgeted income statement for March. Gold Medal Athletic Co. Budgeted Income Statement For the Month Ending March 31 Operating expenses: Total operating expenses Operating income Other revenue and expense: Income before income tax Net income Check My Work 3 more Check My Work uses remaining
