PR 23-3A The budget director of Heads Up 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 January 2010: a. Estimated sales for January: Batting helmet . .... 3,700 units at $70 per unit Football helmet . . 7,200 units at $142 per unit b. Estimated inventories at January 1: Direct materials: Finished products: Plastic . 800 kg Batting helmet . 310 units at $33 per unit Foam lining 520 kg Football helmet . . . .. .. 420 units at $57 per unit c. Desired inventories at January 31: Direct materials: Finished products: Plastic .. ... 1,240 kg Batting helmet . .. .... 290 units at $34 per unit Foam lining . . . . . 450 kg Football helmet . . .... 520 units at $58 per unitd. Direct materials used in production: In manufacture of batting helmet: Plastic . .. 1.20 kg per unit of product Foam lining . ... .. . . .... 0.50 kg per unit of product In manufacture of football helmet: Plastic . .. ..... 2.80 kg per unit of product Foam lining . . . . . . 1.40 kg per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct mate- rials: Plastic $7.50 per kg Foam lining $5.00 per kg f. Direct labour requirements: Batting helmet: Moulding Department 0.20 hr. at $15 per hr. Assembly Department 0.50 hr. at $13 per hr. Football helmet: Moulding Department 0,30 hr. at $15 per hr. Assembly Department 0.65 hr. at $13 per hr. g. Estimated factory overhead costs for January: Indirect factory wages $115,000 Power and light $18,000 Amortization of plant and equipment 32,000 Insurance and property tax 8,700 h. Estimated operating expenses for January: Sales salaries expense $275,300 Advertising expense 139,500 Office salaries expense 83,100 Amortization expense-office equipment 5,800 Telephone expense-selling 3,200 Telephone expense-administrative 900 Travel expense-selling 46.200 Office supplies expense 4,900 Miscellaneous administrative expense 5,200 i. Estimated other income and expense for January: Interest revenue $14,500 Interest expense 17,400h. j. Estimated operating expenses for January: Sales salaries expense $275,300 Advertising expense 139,500 Office salaries expense 83.100 Amortization expenseoffice equipment 5.800 Telephone expenseselling 3,200 Telephone expenseadministrative 900 Travel expenseselling 46.200 Office supplies expense 4.900 Miscellaneous administrative expense 5,200 Estimated other income and expense for January: interest revenue $14,500 Interest expense ' 17.400 Estimated tax rate: 30% Instructions 53'8"!\"wa 951 Prepare a sales budget for January. Prepare a production budget for January. Prepare a direct materials purchases budget for January. Prepare a direct labour cost budget for January. Prepare a factory overhead cost budget for January. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $12,500, and work in process at the end of January 15 desired to be $13,500. Prepare a selling and administrative expenses budget for January. Prepare a budgeted income statement for January. Indirect factory wages $115,000 ' ' Power and light ' 7 $18,000 Amortization of ptant and equipment 32,000 Insurance and property tax 8,700