Budgeted Income Statement and Supporting Budgets The budget director of Jupiter Helmets Inc., 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 May a. Estimated sales for May: Bicycle helmet 7,500 units at $24 per unit Motorcycle helmet 7,000 units at $185 per unit b. Estimated Inventories at May 1: Direct materials: Plastic Foam lining 1,480 lbs. 520 lbs. Finished products: Bicycle helmet 200 units at $15 per unit Motorcycle helmet 100 units at $90 per unit c. Desired Inventories at May 31: Direct materials: Plastic Foam lining 2,000 lbs. 800 s. Finished products: Bicycle helmet 400 units at $15 per unit Motorcycle helmet 300 units at $100 per unit d. Direct materials used in production: In manufacture of bicycle helmet: Plastic 0.90 ib. per unit of product Foam lining 0.20 ib. per unit of product In manufacture of motorcycle helmet: Plastic 3.50 lbs. per unit of product Foam lining 1.40 lbs. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic $4,40 per lb. Foam lining $0.90 per lb. Direct labor requirements: Bicycle helmet: Molding Department 0.30 h. at $15 per hr. Assembly Department 0.10 hr at $14 per hr. Motorcycle helmet: Molding Department 0.50 h at $15 per hr. Assembly Department 0.40 hr at $14 per hr. Q. Estimated factory overhead costs for May: Indirect factory wages Depreciation of plant and equipment $125,000 45,000 Power and light Insurance and property tax $23,000 11,000 h. Estimated operating expenses for May: Sales salaries expense Advertising expense Orice salaries expense Depreciation expense-office equipment Miscellaneous expense-selling Utilities expense-administrative Travel expense-selling Office supplies expense Miscellaneous administrative expense $175,000 120,000 92,000 0,000 5,000 3,000 50,000 2,500 1,500 1. Estimated other income and expense for May: Interest revenue $14,500 Interest expense 3,000 1. Estimated tax rate: 25% Required: 1. Prepare a sales budget for May. Jupiter Helmets Inc. Sales Budget For the Month Ending May 31 Unt Selling Price Total Sales Unit Sales Volume 7 Bicycle helmet C ,500 24 180,000 Motorcycle helmet C5 ,000 C 185 925,000 Total revenue from sales 1,105,000 2. Prepare a production budget for May. Jupiter Helmets Inc. Production Budget For the Month Ending May 31 Bicycle Helmet Units Motorcycle Helmet Units Expected units to be sold 7,500 400 5,000 300 Plus desired Inventory, May 31 Total 5,300 Less estimated Inventory, May 1 7,900 200 7,700 100 Total units to be produced 5,200 3. Prepare a direct materiais purchases budget for May. Jupiter Helmets Inc. Direct Materials Purchases Budget For the Month Ending May 31 Plastic Foam Lining Units required for production Bicycle helmet Motorcycle helmet Plus desired units of Inventory, May 31 Total Less estimated units of inventory, May 1 Total units to be purchased Unit price Total direct materials to be purchased 4. Prepare a direct labor cost budget for May. Jupiter Helmets Inc. Direct Labor Cost Budget For the Month Ending May 31 Molding Department Assembly Department Total Hours required for production: Bicycle helmet Motorcycle helmet Hourly rate Total direct labor cost 5. Prepare a factory overhead cost budget for May. Jupiter Helmets Inc. Factory Overhead Cost Budget For the Month Ending May 31 Indirect factory wages 125,000 Depreciation of plant and equipment 45,000 Power and light 23,000 Insurance and property tax 11,000 Total 204,000 6. Prepare a cost of goods sold budget for May. Work in process at the beginning of May is estimated to be $4,200, and work in process at the end of May is desired to be $3.800 Jupiter Helmets Inc. Cost of Goods Sold Budget For the Month Ending May 31 Direct me: Direct mara purchases Cost of direct materials w ie for use Less Direct materials inventory, May 31 Factory overhead Total ma turing costs Total work in process during period Cost of t he goods for sale 7. Prepare a selling and administrative expenses budget for May Jupiter Helmets Inc Selling and Administrative Expenses Budget For the Month Ending May 31 Selling expenses Total sing expenses Administrative s Total administrative expenses Total operating expens 6. Prepare a budgeted income statement for May. It required, round your interim calculations to nearest whole value Jupiter Helmets Inc. Budgeted Income Statement For the Month Ending May 31 venutom Cost of goods sold Grosso Operating Sding expenses Administrative per Total operating expenses Income from certions Orice Other expenses: Interested Income before income tax Income tax expense Net Income