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 Football helmet 1,200 units at $40 per unit 6,500 units at $160 per unit b. Estimated inventories at March 1:1 ) Direct materials: 1 Plastic Foam lining Finished products: Batting helmet Football helmet c. Desired inventories at March 31: Direct materials: Plastic Foam lining Finished products: Batting helmet Football helmet d. Direct materials used in production: In manufacture of batting helmet: Plastic Foam lining In manufacture of football helmet: Plastic 90 lbs. 80 lbs. 40 units at $25 per unit 240 units at $77 per unit 50s. 65 lbs. 50 units at $25 per unit 220 units at $78 per unit 1.2 lbs. per unit of product 0.5 lb. per unit of product Foam lining 3.5 lbs. per unit of product 1.5 lbs. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic Foam lining f. Direct labor requirements: Batting helmet: Molding Department Assembly Department Football helmet: Molding Department $6 per lb. $4 per lb. 0.2 hr. at $20 per hr. 0.5 hr. at $14 per hr. 0.5 hr. at $20 per hr. Assembly Department g. Estimated factory overhead costs for March: Indirect factory wages Depreciation of plant and equipment 1.8 hrs. at $14 per hr. $86,000 12,000 Power and light Insurance and property tax 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 $940 Interest expense 872 1. 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 Unit Sales Volume Unit Selling Total Sales Price Batting helmet 1,200 40 48,000 Football helmet 6,500 160 1,040,000 Total revenue from sales 1,088,000 2. Prepare a production budget for March. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Gold Medal Athletic Co. Production Budget For the Month Ending March 31 Units Batting Football helmet helmet Desired Inventory, March 31 50 220 Estimated inventory, March 1 -40 -240 Total units to be produced 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. Gold Medal Athletic Co. Direct Materials Purchases Budget For the Month Ending March 31 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 Plastic 4. Prepare a direct labor cost budget for March. Enter all amounts as positive numbers. Gold Medal Athletic Co. Direct Labor Cost Budget For the Month Ending March 31 Molding Department Hours required for production: Batting helmet Football helmet Total Hourly rate Total direct labor cost Foam Lining Total Assembly Department Total 5. Prepare a factory overhead cost budget for March. Gold Medal Athletic Co. Factory Overhead Cost Budget For the Month Ending March 31 Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax Total factory overhead cost 6. Prepare a cost of goods sold budget for March. Work in process at the beginning of March is estimated to be $15,300, and work in process at the end of March is desired to be $14,800. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Gold Medal Athletic Co. Cost of Goods Sold Budget For the Month Ending March 31 Finished goods inventory, March 1 Work in process inventory, March 1 Direct materials: Direct materials inventory, March 1 Direct materials purchases Cost of direct materials available for use Direct materials inventory, March 31 Cost of direct materials placed in production Direct labor Factory overhead Total manufacturing costs Total work in process during period Total manufacturing costs Total work in process during period Work in process inventory, March 31 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, March 31 Cost of goods sold 7. Prepare a selling and administrative expenses budget for March. Gold Medal Athletic Co. Selling and Administrative Expenses Budget For the Month Ending March 31 Selling expenses: Sales salaries expense Advertising expense Telephone expense-selling Travel expense-selling Total selling expenses Administrative expenses: Office salaries expense Depreciation expense-office equipment Telephone expense-administrative Office supplies expense Miscellaneous administrative expense Total administrative expenses Total operating expenses 8. Prepare a budgeted income statement for March. Gold Medal Athletic Co. Budgeted Income Statement For the Month Ending March 31 Revenue from sales Cost of goods sold Gross profit Operating expenses: Selling expenses Administrative expenses Total operating expenses Operating income Other revenue and expense: Interest revenue Income before income tax Income tax expense Net income