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Budgeted Income Statement and SupportingBudgets The budget director of Gold Medal Athletic Co., with the assistance of the controller, treasurer, production manager, and sales manager,

Budgeted Income Statement and SupportingBudgets

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 2016:

  1. Estimated sales for March:
    Batting helmet1,200 units at $40 per unit
    Football helmet6,500 units at $160 per unit
  2. Estimated inventories at March 1:
    Direct materials:
    Plastic90 lbs.
    Foam lining80 lbs.
    Finished products:
    Batting helmet40 units at $25 per unit
    Football helmet240 units at $77 per unit
  3. Desired inventories at March 31:
    Direct materials:
    Plastic50 lbs.
    Foam lining65 lbs.
    Finished products:
    Batting helmet50 units at $25 per unit
    Football helmet220 units at $78 per unit
  4. Direct materials used in production:
    In manufacture of batting helmet:
    Plastic1.20 lbs. per unit of product
    Foam lining0.50 lb. per unit of product
    In manufacture of football helmet:
    Batting helmet3.50 lbs. per unit of product
    Football helmet1.50 lbs. per unit of product
  5. Anticipated cost of purchases and beginning and ending inventory of direct materials:
    Plastic$6.00 per lb.
    Foam lining$4.00 per lb.
  6. Direct labor requirements:
    Batting helmet:
    Molding Department0.20 hr. at $20 per hr.
    Assembly Department0.50 hr. at $14 per hr.
    Football helmet:
    Molding Department0.50 hr. at $20 per hr.
    Assembly Department1.80 hrs. at $14 per hr.
  7. Estimated factory overhead costs for March:
    Indirect factory wages$86,000
    Depreciation of plant and equipment12,000
    Power and light$4,000
    Insurance and property tax2,300
  8. Estimated operating expenses for March:
    Sales salaries expense$184,300
    Advertising expense87,200
    Office salaries expense32,400
    Depreciation expenseoffice equipment3,800
    Telephone expenseselling5,800
    Telephone expenseadministrative1,200
    Travel expenseselling9,000
    Office supplies expense1,100
    Miscellaneous administrative expense1,000
  9. Estimated other income and expense for March:
    Interest revenue$940
    Interest expense872
  10. Estimated tax rate: 30%

Need to solve COST OF GOOD SOLD BUDGET and INCOME STATEMENT.

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