PR 22-3B Budgeted income statement and supporting budgets The budget director of Gold Medal Athletic Co., with the assistance of OB.4 following data for ect use in developing the budgeted income statement for March 2014: a. Estimated sales for March: , production manager, and sales manager, has gathered the f treasurer pt., 1,200 units at $40 per unit 6,500 units at $160 per unit b. Estimated inventories at March 1 Finished products: Direct materials: 90lbs. Batting helmet.. . 40 units at $25 per un 80 lbs. Plastic. 240 units at $77 per unit Football helmet Chapter 22 Budgeting 1055 Direct materials Plastic Batting helmet 50 units at $25 per unit. Football helmet220 units at 578 per unit 65 lbs d. Direct materials used in production: In manufacture of batting helmet Plastic 1.20 bs per unit of product 050 lb. per unit of peoduct In manufacture of football helmet Plastic Foam lining 3.50 Ibs. per unit of product 1.50 lbs per unit of product Anticipated cost of e. $6.00 per ib $4.00 per lb. f. Direct labor requirements: Batting helmet: .0.20 he. at $20 per he 0.50 hr. at $14 per hr. Molding Department Assembly Department Football helmet 0.50 hr. at $20 per he. 1.80 hes. at $14 per he Molding Department.. Assembly Department.. g. Estimated factory overhead costs for March 54,000 2,300 Power and light Insurance and property tax $86,000 12.000 Indirect factory wages Depreciation of plant and equipment h. Estimated operating expenses for March: 5184.300 87,200 32,400 3,800 5,800 ,200 Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Telephone expense-administratve Travel expense-seling Office supplies expense Miscellaneous administrative expense 1,100 1,000 Estimated other income and expense for March: i. $940 872 Interest revenue Interest expense 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