Obi, PR 22-3B Budgeted income statement and supporting budgets or 6 The budget director of Gold Medal Athletic Co., with the assistance of the controller, treasures 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: 1.200 units at $40 per unit Batting helmet 6,500 units at $160 per unit Football helmet... b. Estimated inventories at March 1: Finished products: Direct materials: Plastic. 40 units at $25 per unit 90 lbs. Batting helmet. Football helmet... 240 units at $77 per unit 80 lbs. Foam lining.. c. Desired inventories at March 31: Direct materials: Finished products: Plastic.. 50 lbs. Batting helmet..... 50 units at $25 per unit Foam lining........ 65 lbs. Football helmet...... 220 units at 578 per unit d. Direct materials used in production: In manufacture of batting helmet: 1.1 lbs/unit of product Foam lining. .6 lbs./unit of product In manufacture of football helmet: Plastic... 3.5 lbs. per unit of product Foam lining... 1.5 lbs. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: $6 per lb. $4 per lb. f. Direct labor requirements: Batting helmet Molding Department.. Assembly Department. 0.2 hr. at $20 per hr Football helmet: 0.5hr, at $14 per hr Molding Department Assembly Department.. $18 per hour for labor $15 per hour for labor Plastic.... Plastic...... Foam lining 0.5 hr.at 1.8 hrs. at Power and light Insurance and property tax $4,000 2,300 g. Estimated factory overhead costs for March: Indirect factory wages $86,000 Depreciation of plant and equipment 12,000 h. Estimated operating expenses for March: Sales salaries expense $184,300 Advertising expense 87,200 Office salaries expense 32,400 Depreciation expense--office equipment 3,800 Telephone expense-selling 5,800 Telephone expense-administrative 1,200 Travel expense--selling 9,000 Office supplies expense 1,100 Miscellaneous administrative expense 1,000 i. Estimated other revenue and expense for March: Interest revenue $940 Interest expense 872 i. Estimated tax rate: 30% Instructions 1. Prepare a sales budget for March. 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. hunn months Ohi 4