PR 21-3B Budgeted income statement and supporting budgets Obj. 4 4. Total direct labor cost in Assembly Dept. The budget director of Gold Medal Athletic Co., 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: $171,766 Batting helmet.... 1,200 units at $40 per unit 6,500 units at $160 per unit EXCEL TEMPLATE Football helmet B. Estimated inventories at March 1: Direct materials: Finished products: Batting helmet.... 90 lbs. Plastic 40 units at $25 per unit Foam lining.. 80 lbs Football helmet. 240 units at $77 per unit C. Desired inventories at March 31: Finished products: Batting helmet.. Direct materials: 50 lbs S0 units at $25 per unit Plastic Foam lining... 65 lbs. Football helmet... 220 units at $78 per unit D. Direct materials used in production: In manufacture of batting helmet Plastic..... Foam lining.. . 1.2 lbs. per unit of product 0.5 lb. per unit of product In manufacture of football helmet: 3.5 lbs. per unit of product Plastic. 1.5 lbs. per unit of product Foam lining... E. Anticipated cost of purchases and beginning and ending inventory of direct materials: $6 per lb. $4 per lb. Plastic.. Foam lining F. Direct labor requirements: Batting helmet: Molding Department. Assembly Department. 0.2 hr. at $20 per hr. 0.5 hr. at $14 per hr. Football helmet: 0.5 hr. at $20 per hr. 1.8 hrs. at $14 per hr. Molding Department. Assembly Department. (Com Chapter 21 Budgeting G. Estimated factory overhead costs for March: $4,000 2,300 Indirect factory wages Depreciation of plant and equipment $86,000 Power and light Insurance and property tax 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 Telephone expense-selling Telephone expense-administrative Travel expense-selling Office supplies expense 3,800 5,800 1,200 9,000 1,100 Miscellaneous administrative expense 1,000 I Estimated other income and expense for March: $940 Interest revenue Interest expense 872 J. 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