Hardin Fabrications is preparing its master budget for the third quarter.

Average sales price of merchandise $$220\mathrm{.}00$

Average ingots of steel per unit $3\mathrm{.}5$

Cost of one steel ingot $$17\mathrm{.}00$

Direct labor hours per unit $1\mathrm{.}5$

Direct labor rate per hour $$19\mathrm{.}00$

Projected Sales in Units

January $1,500$

February $1,875$

March $1,750$

April $2,000$

May $1,200$

June $1,900$

July $2,250$

August $2,100$

September $1,650$

October $3,200$

November $1,400$

December $1,900$

Variable overhead per unit produced $$40\mathrm{.}00$

Fixed overhead per year $$96,000$

Selling expense per unit sold $$18\mathrm{.}00$

Fixed administrative expense per year $$125,000$

Capacity for the year $25,000$

$\%$ of next month's sales in production ending inventory $30\%$

$\%$ of next month's production in materials ending inventory $25\%$

Units on hand July $1500$

Steel ingots on hand July $12,083$

Required:

Create the Operating Budget and Budgeted Income Statement for the third quarter.

Note: Do not use the ROUND$()$ function. All numbers should be shown as positive numbers.

Sales Budget

July August September Total

Unit Sales

Price per Unit

Total Sales

Production Budget

July August September Total October

Unit Sales

Desired Ending Inventory

Total Needs

Less: Beginning Inventory

Total Production

Direct Materials Purchases Budget

July August September Total October

Total Production

Direct Materials per Unit

Materials Required for Production

Add: Desired Ending Inventory

Total Material Needs

Less: Beginning Inventory

Total Purchases

Cost per Steel Ingot

Total Cost of Direct Materials

Direct Labor Budget

July August September Total

Total Production

Direct Labor Hours per Unit

Total Direct Labor Hours Needed for Production

Cost per Direct Labor Hour

Total Cost of Direct Labor

Manufacturing Overhead Budget

July August September Total

Total Production

Variable Overhead per Unit Produced

Total Variable Overhead

Fixed Overhead per Unit

Total Fixed Overhead

Total Overhead

Cost of Goods Sold Budget

July August September Total

Sales Units

Direct Materials Cost per Unit

Direct Labor Cost per Unit

Variable Overhead Cost per Unit

Fixed Overhead Cost per Unit

Total Product Cost per Unit

Cost of Goods Sold

Selling and Administrative Expense Budget

July August September Total

Sales Units

Variable Selling Expense per Unit

Total Variable Selling Expense

Fixed Administrative Expense $($for the month$)$

Total Selling and Administrative Expense

Hardin Fabrications

Budgeted Income Statement

For the Quarter Ended September $30,20$XX

July August September Total

Sales

Cost of Goods Sold

Gross Profit

Selling and Administrative Expense

Net Operating IncomeHardin Fabrications is preparing its master budget for the third quarter.

Average sales price of merchandise $$220$

Capacity for the year $25,000$

$\%$ of next month's sales in production ending inventory

$\%$ of next month's production in materials ending inventory

$30\%$

Units on hand July $1$

Steel ingots on hand July $1,2,083$