Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Use the following information about this product line to complete the problem requirements. Each handisaw sells for $50. Wesley expects the following unit sales:

January	2,400
February	2,200
March	2,900
April	2,500
May	2,300

Wesleys ending finished goods inventory policy is 30 percent of the next months sales.

Suppose each handisaw takes approximately .35 hours to manufacture, and Wesley pays an average labor wage of $15.50 per hour.

Each handisaw requires a plastic housing that Wesley purchases from a supplier at a cost of $5.00 each. The company has an ending raw materials inventory policy of 10 percent of the following months production requirements. Materials other than the housing unit total $3.50 per handisaw.

Manufacturing overhead for this product includes $63,000 annual fixed overhead (based on production of 24,000 units) and $1.00 per unit variable manufacturing overhead. Wesleys selling expenses are 5 percent of sales dollars, and administrative expenses are fixed at $15,000 per month.

Required:

1.

Compute the budgeted cost of goods sold following for the first quarter. (Round cost per unit to 2 decimal places. Round final answers to the nearest dollar amount.)

	Jan.	Feb.	March	1st Quarter Total
Budgeted Cost of Goods Sold

.

Compute the budgeted selling and administrative expenses following for the first quarter.

	Jan.	Feb.	March	1st Quarter Total
Budgeted Selling & Admin Expenses	21,000	20,500	22,250	$63,750

3.	Complete the budgeted income statement for the handisaw product for the first quarter. (Round cost per unit to 2 decimal places. Round final answers to the nearest dollar amount.)

	Jan	Feb	March	1st Quarter Total
Budgeted Sales Revenue
Budgeted Cost of Goods Sold
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Budgeted Gross Profit
Budgeted Selling&Admin Expenses
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?
Budgeted Net Operating Income