INSTRUCTIONS FOR COMPREHENSIVE BUDGET EXERCISE

The budget director of Safety Athletic 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 January $2023$

ESTIMATED SALES FOR JANUARY:

$\backslash$table$[[$Batting Helmet,$3500$ units at $$65$ per unit$],[$Football Helmet,$6800$ units at $$130$ per unit$]]$

ESTIMATED INVENTORIES AT JANUARY $1$:

Direct Materials:

Plastic $,900lbs$

Finished Products:

Foam Lining

$490lbs$

Batting Helmet

$270$ units at $$32$ per unit

Football Helmet $,400$ units at $$52$ per unit

DESIRED INVENTORIES AT JANUARY $31$:

Direct Materials:

Plastic $1240lbs$

Finished Products:

Batting Helmet $240$ units at $$34$ per unit

Foam Lining $,470lbs$

Football Helmet $,360$ units at $$55$ per unit

DIRECT MATERIALS USED IN PRODUCTION:

In manufacture of batting helmet:

Plastic $,1\mathrm{.}20lbs$ per unit of product

Foam Lining $,0\mathrm{.}50lb$ per unit of product

In manufacture of football helmet:

Plastic $2\mathrm{.}80lbs$ per unit of product

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

ANTICIPATED COST OF PURCHASES AND BEGINNING AND ENDING INVENTORY OF DIRECT MATERIALS:

$\backslash$table$[[$Plastic$,$$$7\mathrm{.}00$ per lb$],[$Form Lining,$$4\mathrm{.}00$ per lb$]]$

DIRECT LABOR REQUIREMENTS:

Batting Helmet:

Molding Department $0\mathrm{.}20$ hour at $$14$ per hour

Assembly Department $0\mathrm{.}50$ hour at $$12$ per hour

Football Helmet:

Molding Department

$0\mathrm{.}30$ hour at $$14$ per hour

Assembly Department $0\mathrm{.}65$ hour at $$12$ per hour

ESTIMATED FACTORY OVERHEAD COSTS FOR JANUARY:

$\backslash$table$[[$Indirect factgory wages,$105,000],[$Depreciation of plant and equipment,$30,000],[$Power and light,$16,000],[$Insurance and property tax,$8,700]]$

ESTIMATED OPERATING EXPENSES FOR JANUARY:

$\backslash$table$[[$Sales salaries expense,$265,800],[$Advertising expense,$135,600],[$Office salaries expense,$84,300],[$Depreciation expense $-$ office equipment,$5,200],[$Telephone expense $-$ selling,$3,500],[$Telephone expense $-$ administrative,$700],[$Travel expense $-$ selling,$43,100],[$Office supplies expense,$4,900],[$Miscellaneous administrative expense,$5,200]]$

ESTIMATED OTHER INCOME AND EXPENSE FOR JANUARY:

$\backslash$table$[[$Interest revenue,$$14,500$