O PR 22-3B Budgeted income statement and supporting budgets bor pt. 766 The budget director of Gold Medal Athletic Co. with the assistance of the controller, tra production manager, and sales manager, has gathered the following data for use in dodo the budgeted income statement for March: a. Estimated sales for March: 1,200 unitate unit Batting helmet 6.500 units unit Football helmet b. Estimated inventories at March 1: Direct materials: Finished produce Plastic 90 lbs Batting hem 40 units at $25 per unit Foam lining 80 lbs Football helmet 240 units at $77 per unit c. Desired inventories at March 31: Direct materials Finished products Plastic 50 lbs Batting helmet.. 50 units at $25 per unit Foam lining Football helmet 220 units at 578 per unit d. Direct materials used in production In manufacture of batting helitiet 1.2 lbs. per unit of product Form lining 0.5 lb.per unit of product In mancture of footballhelmet 3.5 lbs.per unit of product 1.5 lbs. per unit of product c. Anticipated cost of purchases and beginning and ending inventory of direct materials: 56 perib 54 per lb Direct labor requirements Foam Molding Department 02 ht at $20 per hr 0.5 hr. at 514 per hr Focltal helmet Molding Department Assembly Department 0.5 h at $20 per hr 1.8 his at 514 petht. Chapter 22 Budgeting 1147 $4,000 2.300 g. Estimated factory overhead costs for March Indirect factory wages 586,000 Power and light Depreciation of plant and equipment 12.000 Insurance and property tax h. Estimated operating expenses for March: Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Telephone expense-selling Telephone expense --administrative Travel expense-selling Office supplies expense Miscellaneous administrative expense 1.000 i Estimated other revenue and expense for March $940 Interest revenue 872 Interest expense Estimated tax rate: 30% Instructions 1. Prepare a sales budget for March $184,300 87,200 32,400 3,800 5,800 1.200 9,000 7.100 2. Prepare a production budget for March 3. Prepare a direct materials 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 March. Work in process at the beginning of March is estimated to be $15,300, and work in process at the end of March is desired to be $14,800. 7. Prepare a selling and administrative expenses budget for March 8. Prepare a budgeted income statement for March PR 22-3B, with the following exceptions: Change DM used in Batting Helmet production to the following: Plastic Foam Lining 1.1 lbs/unit of product .6 lbs/unit of product Change DL requirements in Football Helmet production to the following: Molding Department Assembly Department $18 per hour for labor $15 per hour for labor