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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 $6,750$ units at $$190$ per unit

b$.$ Estimated inventories at May $1$:

Direct materials:

Plastic $,1,480lbs.$

Foam lining $520$ 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 $,2,000$ lbs$.$

Foam lining $800$ lbs $.$

Finished products:

Budgeted Income Statement and Supporting Budgets

a$.$ Estimated sales for May:

Blcycle helmet $,7,500$ units at $$24$ per unit

Motorcycle helmet $6,750$ units at $$190$ per unit

b$.$ Estimated Inventorles at May $1$:

Direct materlals:

Plastic $,1,480lbs.$

Foam lining $520$ 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 $,2,000$ lbs$.$

Foam lining $800$ lbs$.$

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 bicyele helmet:

Flastic

$0\mathrm{.}90$ lb $.$ Per unit of product

Foam lining

$0\mathrm{.}20$ lb $.$ per unit of product

In manufacture of matorcycle helmet:

Flastic

$3\mathrm{.}50$ lbs per unit of product

Foam lining $1\mathrm{.}40$ lbs$.$ per unit of product

e$.$ anticipated cost of purchases and beginning and ending inventory of direct materials.

Plastic $4\mathrm{.}40$ per lb$.$

Foam lining $\mathrm{.}90$ per lb

f$.$ Direct labor requirements.

Bicycle helmet: