Information for Budgeted Income Statement and Supporting Budgets:

The budget director of Athletic Supplies 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 March:

a$.$ Estimated sales for March:

Batting helmet

$1,100$ units at $$42$ per unit

Football helmet

$6,400$ units at $$146$ per unit

b$.$

Estimated inventories at March $1$:

Direct materlals:

Plastic

$55$ lbs$.$

$65$ lbs$.$

Foam lining

Finished products:

Batting helmet

Football helmet

$75$ units at $$28$ per unit

$220$ units at $$75$ per unit

C$.$

Desired inventories at March $31$:

Direct materials:

Plastic

Foam lining

$70$ lbs$.$

$74$ lbs$.$

Finished products:

Batting helmet

Football helmet

$50$ units at $$27$ per unit

$225$ units at $$72$ per unit

d$.$

Direct materials used in production:

In manufacture of batting helmet:

Plastic

$1\mathrm{.}5$ lbs$.$ per unit of product

Foam lining

$0\mathrm{.}75$ lb$.$ per unit of product

In manufacture of football helmet:

Plastic

$3\mathrm{.}5$ lbs$.$ per unit of product

Foam lining

$1\mathrm{.}75$ lbs$.$ per unit of product

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

Plastic

$$5\mathrm{.}4$ per lb$.$

Foam lining

$$3\mathrm{.}6$ per lb$.$

f$.$

Direct labor requirements:

Batting helmet:

Molding Department

Assembly Department

$0\mathrm{.}3$ hr$.$ at $$21$ per hr$.$

$0\mathrm{.}6$ hr$.$ at $$15$ per hr$.$

Football helmet:

Molding Department

Assembly Department

$0\mathrm{.}8$ hr$.$ at $$21$ per hr$.$

$1\mathrm{.}6$ hrs$.$ at $$15$ per hr$.$

g$.$

Estimated factory overhead costs for March:

i$.$

Indirect factory wages $$75,000$

Depreciation of plant and equipment $14,000$

Power and light $3,000$

Insurance and property tax $3,700$

h$.$ Estimated operating expenses for March:

Sales salaries expense $$186,200$

Advertising expense $88,200$

Office salaries expense $33,500$

Depreciation expense$-$office equipment $5,000$

Telephone expense$-$selling $3,900$

Telephone expense$-$administrative $1,500$

Travel expense$-$selling $10,000$

Office supplies expense $1,500$

Miscellaneous administrative expense $2,200$

Estimated other income and expense for March:

Interest revenue $800$

Interest expense $875$

Estimated tax rate: $30\%$

Note: above information was adapted from Financial and Managerial Accounting $(12*$ edition$)$ Warren, Reeve and Duchac.