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: Direct materials: Plastic Foam lining Finished products: Batting helmet 90 lbs. 80 lbs. 40 units at $25 per unit Football helmet c. Desired inventories at March 31: Direct materials: Plastic Foam lining Finished products: Batting helmet 240 units at $77 per unit 50 lbs. 65 lbs. 50 units at $25 per unit Football helmet d. Direct materials used in production: In manufacture of batting helmet: Plastic 220 units at $78 per unit 1.2 lbs. per unit of product 0.5 lb. per unit of product Foam lining In manufacture of football helmet: Plastic 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: Plastic Foam lining f. Direct labor requirements: Batting helmet: Molding Department $6 per lb. $4 per lb. 0.2 hr. at $20 per Assembly Department Football helmet: Molding Department 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 i. Estimated other revenue and expense for March: Interest revenue $940 Interest expense 872 j. Estimated tax rate: 30% 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 Direct materials: 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 available for sale 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: Total selling expenses Administrative expenses: 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 Operating expenses: Total operating expenses Operating income Other revenue and expense: Income before income tax Net income