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Budgeted income statement and supporting budgets for three months Bellaire Inc. gathered the following data for use in developing the budgets for the first quarter (January, February, March) of its fiscal year: a. Estimated sales at $125 per unit: January 25,000 units February 30,000 units March 45,000 units April 50,000 units b. Estimated finished goods inventories: January 1 2,000 units January 31 10% of next month's sales February 28 10% of next month's sales March 31 10% of next month's sales C. Work in process inventories are estimated to be insignificant (zero). d. Estimated direct materials inventories: January 1 1,000 lbs. January 31 1,500 lbs. February 28 2,000 lbs. March 31 2,500 lbs. e. Manufacturing costs: Per Unit $ 12 60 3 5 Direct materials (0.8 lb. per unit x $15 per Ib.) Direct labor (2.5 hrs. per unit * $24 per hr.) Variable factory overhead ($1.20 per direct labor hour) Fixed factory overhead ($200,000 per month, allocated using 40,000 units) Total per-unit manufacturing costs f. Selling expenses: Variable selling expenses $4 per unit Fixed selling expenses $150,000 Administrative expenses (all fixed costs) $400,000 $80 1. Prepare a sales budget for March. Bellaire Inc. Sales Budget For the First Quarter Ending March 3 January February March Estimated units sold Selling price per unit x$ Total budgeted sales First Quarter X$ X$ 2. Prepare a production budget for March. Bellaire Inc. Production Budget For the First Quarter Ending March 3 January February March First Quarter Total units available for sale Total units to be produced 3. Prepare a direct materials purchases budget for March. Bellaire Inc. Direct Materials Purchases Budget For the First Quarter Ending March 31 January February Units to be produced Materials required per unit Ib. Ib. Materials required for production lbs. March First Quarter Ib. Ib. Ibs. Ibs. Ibs. Ibs. Ibs. Ibs. Ibs. Total materials available for use Ibs. Ibs. lbs. Ibs. lbs. Ibs. lbs. Ibs. lbs. lbs. lbs. lbs. Total materials to be purchased Cost per pound X$ X$ X$ X$ Cost of direct materials to be purchased 4. Prepare a direct labor cost budget for March. Bellaire Inc. Direct Labor Cost Budget For the First Quarter Ending March 31 January February March First Quarter hrs. hrs. hrs. hrs. hrs. hrs. hrs. hrs. X$ X$ X$ X$ 5. Prepare a factory overhead cost budget for March. Bellaire Inc. Factory Overhead Cost Budget For the First Quarter Ending March 31 January February March Variable factory overhead: hrs. hrs. hrs. First Quarter hrs. x$ Fixed factory overhead: Total factory overhead cost 6. Prepare a cost of goods sold budget for March. Bellaire Inc. Cost of Goods Sold Budget For the First Quarter Ending March 31 January February March Beginning finished goods inventory Cost of goods manufactured: First Quarter Total cost of goods manufactured 9 quand 7. Prepare a selling and administrative expenses budget for March. Enter all amounts as positive number. Bellaire Inc. Selling and Administrative Expenses Budget For the First Quarter Ending March 31 January February March First Quarter Selling expenses: X$ X$ X$ X$ Total variable selling expenses Total selling expenses Administrative expenses: Total selling and administrative expenses 8. Prepare a budgeted income statement with budgeted operating income for March. Bellaire Inc. Budgeted Income Statement For the First Quarter Ending March 31 January February March First Quarter $ Gross profit Selling and administrative expenses: Total selling and administrative expenses