The budget director of Safety Athletic 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 January 2023

ESTIMATED SALES FOR JANUARY: Batting Helmet 3500 units at $65 per unit Football Helmet 6800 units at $130 per unit

ESTIMATED INVENTORIES AT JANUARY 1: Direct Materials: Finished Products: Plastic 900 lbs Batting Helmet 270 units at $32 per unit Foam Lining 490 lbs Football Helmet 400 units at $52 per unit

DESIRED INVENTORIES AT JANUARY 31: Direct Materials: Finished Products: Plastic 1240 lbs Batting Helmet 240 units at $34 per unit Foam Lining 470 lbs Football Helmet 360 units at $55 per unit

DIRECT MATERIALS USED IN PRODUCTION: In manufacture of batting helmet: Plastic 1.20 lbs per unit of product Foam Lining 0.50 lb per unit of product In manufacture of football helmet: Plastic 2.80 lbs per unit of product Foam Lining 1.40 lbs per unit of product

ANTICIPATED COST OF PURCHASES AND BEGINNING AND ENDING INVENTORY OF DIRECT MATERIALS: Plastic $7.00 per lb Form Lining $4.00 per lb

DIRECT LABOR REQUIREMENTS: Batting Helmet: Molding Department 0.20 hour at $14 per hour Assembly Department 0.50 hour at $12 per hour Football Helmet: Molding Department 0.30 hour at $14 per hour Assembly Department 0.65 hour at $12 per hour INSTRUCTIONS FOR COMPREHENSIVE BUDGET EXERCISE

ESTIMATED FACTORY OVERHEAD COSTS FOR JANUARY: Indirect factgory wages 105,000$ Depreciation of plant and equipment 30,000 Power and light 16,000 Insurance and property tax 8,700

ESTIMATED OPERATING EXPENSES FOR JANUARY: Sales salaries expense 265,800$ Advertising expense 135,600 Office salaries expense 84,300 Depreciation expense - office equipment 5,200 Telephone expense - selling 3,500 Telephone expense - administrative 700 Travel expense - selling 43,100 Office supplies expense 4,900 Miscellaneous administrative expense 5,200

ESTIMATED OTHER INCOME AND EXPENSE FOR JANUARY: Interest revenue $14,500 Interest expense $18,700

ESTIMATED TAX RATE: 30%

1. Prepare a sales budget for January 2. Prepare a production budget for January 3. Prepare a direct material purchases budget for January 4. Prepare a direct labor cost budget for January 5. Prepare a factory overhead cost budget for January 6. 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 is desired to be $13,500 7. Prepare a selling and administrative expenses budget for January 8. Prepare a budgeted income statement for January