Question
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
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:
- Estimated sales for March:
Batting helmet 1,200 units at $40 per unit Football helmet 6,500 units at $160 per unit - Estimated inventories at March 1:
Direct materials: Plastic 90 lbs. Foam lining 80 lbs. Finished products: Batting helmet 40 units at $25 per unit Football helmet 240 units at $77 per unit - Desired inventories at March 31:
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 - 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 - Anticipated cost of purchases and beginning and ending inventory of direct materials:
Plastic $6 per lb. Foam lining $4 per lb. - 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. - Estimated factory overhead costs for March:
Indirect factory wages $86,000 Depreciation of plant and equipment 12,000 Power and light 4,000 Insurance and property tax 2,300 - Estimated operating expenses for March:
Sales salaries expense $184,300 Advertising expense 87,200 Office salaries expense 32,400 Depreciation expenseoffice equipment 3,800 Telephone expenseselling 5,800 Telephone expenseadministrative 1,200 Travel expenseselling 9,000 Office supplies expense 1,100 Miscellaneous administrative expense 1,000 - Estimated other revenue and expense for March:
Interest revenue $940 Interest expense 872 - 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 Price | Total Sales | |||||
Batting helmet | fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 | ||||
Football helmet | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 | ||||
Total revenue from sales | $fill in the blank 7 |
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 helmet | Football helmet | |
Desired inventory, March 31Estimated inventory, March 1Expected units to be soldTotal units availableTotal units to be produced | fill in the blank 9 | fill in the blank 10 |
Desired inventory, March 31Estimated inventory, March 1Expected units to be soldTotal units availableTotal units to be produced | fill in the blank 12 | fill in the blank 13 |
Desired inventory, March 31Estimated inventory, March 1Expected units to be soldTotal units availableTotal units to be produced | fill in the blank 15 | fill in the blank 16 |
Desired inventory, March 31Estimated inventory, March 1Expected units to be soldTotal units availableTotal units to be produced | fill in the blank 18 | fill in the blank 19 |
Desired inventory, March 31Estimated inventory, March 1Expected units to be soldTotal units availableTotal units to be produced | fill in the blank 21 | fill in the blank 22 |
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 | ||||||
---|---|---|---|---|---|---|
Plastic | Foam Lining | Total | ||||
Units required for production: | ||||||
Batting helmet | fill in the blank 23 | fill in the blank 24 | ||||
Football helmet | fill in the blank 25 | fill in the blank 26 | ||||
Desired units of inventory, March 31 | fill in the blank 27 | fill in the blank 28 | ||||
Total units available | fill in the blank 29 | fill in the blank 30 | ||||
Estimated units of inventory, March 1 | fill in the blank 31 | fill in the blank 32 | ||||
Total units to be purchased | fill in the blank 33 | fill in the blank 34 | ||||
Unit price | $fill in the blank 35 | $fill in the blank 36 | ||||
Total direct materials to be purchased | $fill in the blank 37 | $fill in the blank 38 | $fill in the blank 39 |
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 | Assembly Department | Total | ||||
Hours required for production: | ||||||
Batting helmet | fill in the blank 40 | fill in the blank 41 | ||||
Football helmet | fill in the blank 42 | fill in the blank 43 | ||||
Total | fill in the blank 44 | fill in the blank 45 | ||||
Hourly rate | $fill in the blank 46 | $fill in the blank 47 | ||||
Total direct labor cost | $fill in the blank 48 | $fill in the blank 49 | $fill in the blank 50 |
5. Prepare a factory overhead cost budget for March.
Gold Medal Athletic Co. Factory Overhead Cost Budget For the Month Ending March 31 | |
---|---|
Advertising expenseIndirect factory wagesOffice salaries expenseOffice supplies expenseSales salaries expense | $fill in the blank 52 |
Advertising expenseDepreciation of plant and equipmentOffice salaries expenseOffice supplies expenseSales salaries expense | fill in the blank 54 |
Advertising expenseOffice salaries expenseOffice supplies expensePower and lightSales salaries expense | fill in the blank 56 |
Advertising expenseInsurance and property taxOffice salaries expenseOffice supplies expenseSales salaries expense | fill in the blank 58 |
Total factory overhead cost | $fill in the blank 59 |
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