PR 22-33 Budgeted income statement and supporting budgets 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 saies for March: Batting helmet .............................. 1,200 units at $40 per unit Football helmet ............................. 6.500 units at $160 per unit . Estimated inventories at March 1: Direct materials: Finished products: Plastic ............. 90 lbs. Batting helmet ........ 40 units at $25 per unit Foam lining ........ 80 lbs Football helmet ....... 240 units at $77 per unit . 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 $78 per unit . Direct materials used in production: in manufacture of batting helmet: Plastic ................................... 1.2 lbs per unit of product Foam lining .............................. 0.5Il1 per 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 . Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic ...................................... $6 per lb. Foam lining ................................. 54 per lb. Direct labor requirements: Batting helmet: Molding Department ..................... 0.2 hr. at $20 per hr. Assembly Department .................... 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 .................... 3. Estimated factory overhead costs for March: indirect factory wages $86,000 Power and light 54.000 Depreciation of plant and equipment 12,000 Insurance and property m 2.300 h. Estimated operating expenses for March: Sales salaries expense $184,300 Advertising expense 87200 Office salaries expense 32,400 Depreciation expenseoffice equipment 3,800 Telephone expenseselling 5,800 Telephone expenseadminisuative 1,200 Travel expenseselling 9,000 Office supplies expense 1.l00 Miscellaneous administrative expense 1,000 i. Estimated other revenue and expense for March; Interest revenue interest expense j. Estimated tax rate: 30% instructions Prepare a sales budget for March. FAV'LD'P'NE" $940 872 Prepare a production budget for March. Prepare a direct materials purchases budget for March. Prepare a direct labor cost budget for Mardt. Prepare a factory overhead cost budget for March. Prepare a cost of goods sold budget for March. Work in process at the beginning of March is on. 4 estimated to be 815,300, and work in process at the end of March is desired to be $14,800. 90:4 Prepare a selling and administrative expenses budget for March. Prepare a budgeted income smtement for Math