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

b$.$ Estimated inventories at March $1$:

Direct materials:

Plastic

$90$ lb $.$

Foam lining

$80$ lb $.$

Finished products:

Batting helmet

$40$ units at $$25$ per unit

Football helmet

$240.$ units at $$77$ per unit

c$.$ Desired inventories at March $31$ :

Direct materials:

Plastic

$50$ lb $.$

Foam lining

$65$ lb $.$

Finished products:

Batting helmet

$50$ units at $$25$ per unit