H 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 1. Estimated sales for March: Batting helmet 1,200 units at $40 per unit Football helmet 6,500 units at $160 per unit 2. Estimated Inventories at March 1 Direct materials: Finished products Plastic 90 lbs units at $25 per Batting helmet Football 10 Foam lining 80 lbs units at $77 per 240 helmet 1 3. Desired Inventories at March 31 Finished Direct materials: products units at $25 per Plastic 50 lbs Batting helmet unit Football 65 lbs units at $78 per 220 Foam lining helmet 4. Direct materials used in production Assignment Data 40 unt unit 50 units at $78 per D E Foam lining 65 lbs. Football helmet 220 4. Direct materials used in production: unit 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: 3.5 lbs. per unit of Plastic product 1.5 lbs. per unit of Foam lining product 5. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic $6 per lb. Foam lining $4 per lb. 6. Direct labor requirements: Batting helmet: Molding Department 0.2 hr. at $20 per hr. Assembly 8 0.5 hr. at $14 per hr. Department 5 B D E $4,000 Power and light Insurance and property tax 2,300 JX 872 A olding Department 0.5 hr. at $20 per hr. Assembly Department 1.8 hrs. at $14 per hr. 7. Estimated factory overhead costs for March: Indirect factory nages $86,000 Depreciation of plant and equipment 12,000 B. Estimated operating expenses for March: Sales salaries $184,300 expense Advertising expense 87,200 Office salaries 32,400 expense Depreciation expense office 3,800 equipment Telephone 5,800 expenseselling Telephone expense administra 1,200 tive Travel 9,000 expenseselling Travel expense-selling 9,000 Office supplies expense 1,100 Miscellaneous administrative 1,000 expense 9. Estimated other revenue and expense for March Interest revenue $940 Interest expense 872 10. Estimated tax rate: 30% Instructions 1. Prepare a sales budget for March 2. Prepare a production budget for March 3. Prepare a direct material purchases budget for March 4. Prepare a direct labor cost budget for March 5. Prepare a factory overhead cost budget for March 6. Prepare a cost of goods sold budget for Marth. Work in process at the beginning of March is estimated to be $15,300, and work in process at the end of each dessed to be 14.30 7. Prepare a sering and administrative expenses budget for March 3. Prepare a budgeted income statement for March
