Prepare the following budgets for March 2019:

1. Sales budget
2. Production budget
3. Direct materials purchases budget
4. Direct labor cost budget
5. Factory overhead cost budget
6. Costs of goods sold budget. Work in process at the beginning of March is estimated to be

$11,000, and work in process at the ending of March is desired to be $12,500.

7. Selling and administrative expenses budget
8. Budgeted income statement

Information for Budgeted Income Statement and Supporting Budgets:

The budget director of Athletic Supplies Inc., 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:

1. Estimated sales for March:

Batting helmet	1,100 units at $42 per unit
Football helmet	6,400 units at $146 per unit

2. Estimated inventories at March 1:

Direct materials:
Plastic	55 lbs.
Foam lining	65 lbs.
Finished products:
Batting helmet	75 units at $28 per unit
Football helmet	220 units at $75 per unit

3. Desired inventories at March 31:

Direct materials:
Plastic	70 lbs.
Foam lining	74 lbs.
Finished products:
Batting helmet	50 units at $27 per unit
Football helmet	225 units at $72 per unit

d. Direct materials used in production: In manufacture of batting helmet:
Plastic	1.5 lbs. per unit of product
Foam lining	0.75 lb. per unit of product
In manufacture of football helmet:
Plastic	3.5 lbs. per unit of product
Foam lining	1.75 lbs. per unit of product

5. Anticipated cost of purchases and beginning and ending inventory of direct materials:

Plastic	$5.4 per lb.
Foam lining	$3.6 per lb.

6. Direct labor requirements:

Batting helmet:
Molding Department	0.3 hr. at $21 per hr.
Assembly Department	0.6 hr. at $15 per hr.
Football helmet:
Molding Department	0.8 hr. at $21 per hr.
Assembly Department	1.6 hrs. at $15 per hr.

7. Estimated factory overhead costs for March:

Indirect factory wages	$75,000
Depreciation of plant and equipment	14,000
Power and light	3,000
Insurance and property tax	3,700

8. Estimated operating expenses for March:

Sales salaries expense	$186,200
Advertising expense	88,200
Office salaries expense	33,500
Depreciation expenseoffice equipment	5,000
Telephone expenseselling	3,900
Telephone expenseadministrative	1,500
Travel expenseselling	10,000
Office supplies expense	1,500
Miscellaneous administrative expense	2,200

1. Estimated other income and expense for March:

Interest revenue	800
Interest expense	875

10. Estimated tax rate: 30%