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:

1. Estimated sales for March:

Batting helmet	1,200 units at $40 per unit
Football helmet	6,500 units at $160 per unit

2. 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

3. 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

4. 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

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

Plastic	$6 per lb.
Foam lining	$4 per lb.

6. 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.

7. Estimated factory overhead costs for March:

Indirect factory wages	$86,000		Power and light	$4,000
Depreciation of plant and equipment	12,000		Insurance and property tax	2,300

8. 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

9. Estimated other revenue and expense for March:

Interest revenue	$940
Interest expense	872

10. Estimated tax rate: 30%

Instructions

2. Prepare a sales budget for March.
3. Prepare a production budget for March.
4. Prepare a direct materials purchases budget for March.
5. Prepare a direct labor cost budget for March.
6. Prepare a factory overhead cost budget for March.
7. 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.
8. Prepare a selling and administrative expenses budget for March.
9. Prepare a budgeted income statement for March.