Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Each handisaw sells for $$40.$ Wesley expects the following unit sales:

January $2,000$

February $2,400$

March $3,100$

April $2,900$

May $2,200$

Wesley$$s ending finished goods inventory policy is $40$ percent of the next month$$s sales.

Suppose each handisaw takes approximately $0\mathrm{.}65$ hours to manufacture, and Wesley pays an average labor wage of $$16\mathrm{.}50$ per hour.

Each handisaw requires a plastic housing that Wesley purchases from a supplier at a cost of $$6\mathrm{.}00$ each. The company has an ending direct materials inventory policy of $10$ percent of the following month$$s production requirements. Materials other than the housing unit total $$4\mathrm{.}00$ per handisaw.

Manufacturing overhead for this product includes $$63,000$ annual fixed overhead $($based on production of $27,000$ units$)$ and $$1\mathrm{.}00$ per unit variable manufacturing overhead. Wesley$$s selling expenses are $6$ percent of sales dollars, and administrative expenses are fixed at $$16,000$ per month.

Required:

$1.$ Compute the budgeted cost of goods sold for the first quarter.

$2.$ Compute the budgeted selling and administrative expenses for the first quarter.

$3.$ Complete the budgeted income statement for the handisaw product for the first quarter.