Estimated factory overhead costs for May Indirect factory wages Depreciation of plant and equipment $125,000 h Estimated operating expenses for May Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Miscellaneous expense-selling Utilities expense-administrative Travel expense-selling Office supplies expense Miscellaneous administrative expense 45,000 i. Estimated other income and expense for May: Interest revenue Interest expense j. Estimated tax rate: 25% Instructions $14,560 3,000 1. Prepare a sales budget for May. 2. Prepare a production budget for May. Chapter 13 Budgeting and Standard Costs Power and light $23,000 Insurance and property tax 11,000 $175,000 120,000 92,000 6,000 5,000 3,000 50,000 3. Prepare a direct materials purchases budget for May. 4. Prepare a direct labor cost budget for May. 5. Prepare a factory overhead cost budget for May. 2,500 1,500 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. 7. Prepare a selling and administrative expenses budget for May. 8. Prepare a budgeted income statement for May. daylens snahy P13-2 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 devel oping the budgeted income statement for May: a. Estimated sales for May: Bicycle helmet Motorcycle helmet 7,500 units at $24 per unit 5,000 units at $175 per unit b. Estimated inventories at May 1: Plastic Direct materials: Foam lining 1,480 lbs. 520 lbs. c. Desired inventories at May 31: Direct materials: Plastic Finished products: Bicycle helmet Motorcycle helmet 200 units at $15 per unit 100 units at $90 per unit 2,000 lbs. Foam lining 800 lbs. Finished products: Bicycle helmet Motorcycle helmet 400 units at $15 per unit 300 units at $100 per unit d. Direct materials used in production: In manufacture of bicycle helmet: Plastic Foam lining 0.90 lb. per unit of product 0.20 lb. per unit of product 3.50 lbs. per unit of product 1.40 lbs. per unit of product In manufacture of motorcycle helmet: Plastic Foam lining e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic Foam lining $4.40 per lb. $0.90 per lb. f. Direct labor requirements: Bicycle helmet: Molding Department 0.30 hr. at $15 per hr. Assembly Department 0.10 hr. at $14 per hr. Motorcycle helmet: Molding Department 0.50 hr. at $15 per hr. Assembly Department 0.40 hr. at $14 per hr