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:

Batting helmet... ................... 1,200 units at $40 per unit

Football helmet .............................6,500 units at $160 per unit

B. 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

C. Desired inventories at March 31:

Direct materials:

Plastic ............. 50 lbs.

Foam lining........65 lbs.

Finished products:

Batting helmet ........ 50 units at $25 per unit

Football helmet .......220 units at $78 per unit

D. Direct materials used in production:

In manufacture of batting helmet:

Plastic ...................................1.2 lbs. per unit of product

Foam lining.............................. 0.5 lb. 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

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

Plastic ......................................$6 per lb.

Foam lining .................................$4 per lb.

F. 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:

Molding Department .....................0.5 hr. at $20 per hr.

Assembly Department ....................1.8 hrs. at $14 per hr.

G. Estimated factory overhead costs for March:

Indirect factory wages ................86,000

Depreciation of plant and equipment............12,000

Power and light ..............4,000

Insurance and property taxes..........2,300

H. Estimated operating expenses for March:

Sales salaries expense...............184,300

Advertising expense ................87,200

Office salaries expense ............32,400

Depreciation expenseoffice equipment ........3,800

Telephone expenseselling...............5,800

Telephone expenseadministrative .......1,200

Travel expenseselling .........9,000

Office supplies expense..........1,100

Miscellaneous administrative expense........1,000

I. Estimated other income and expense for March:

Interest revenue $940

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 material 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.