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 2014:

a. Estimated sales For March:

Batting helmet ...........1,200 units at $40 per unit

Football helmet...........6,500 units at $160 per unit

b. Estimated inventor March 1:

c. Desired inventories at March 31:

d. Direct materials used in production:

e. Anticipated cost of purchases and beginning and ending inventory of direct materials:
Plastic.......................................$6.00 per lb.
Foam lining..............................$4.00 per lb.
f. Direct labor requirement.

g. Estimated factory overhead costs for March:

h. Estimated operating expenses for March:
Sales salaries expense ................................... $ 184,300
Advertising expense .............................................87,200
Office salaries expense ........................................32,400
Depreciation expense__office equipment ............ 3,800
Telephone expense__selling ............................... 5,800
Telephone expense__administrative ................... 1,200
Travel expense__selling ..................................... 9,000
Office supplies expense ....................................... 1,100
Miscellaneous administrative expense ................ 1,000
i. Estimated other income and expense for March:
Interest revenue ..................................................$ 940
Interest expense ................................................... 872
j. Estimated tax rate: 30%

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

Transcribed Image Text:

Finished products: 90lbs Batting helmet. Direct materials: 40 uits at $25 per unit 80lbs Football hele 240 units at $77 per unit Foam lining.. Direct materials: Finished products: Plastic... . 50 lbs Foam lining65 lbs Batting helmet......50 units at $25 per unit Football helmet.220 units at $78perunit In manufacture of batting helmet: Plastic Foam lining..... ......................................0.50 lb per unit of product In manufacture of football helmet: Plastic Foam lining........... .. ......_ . . .. ...... 50bs. per unit of product Batting helmet: ..0.20 hr. at $20 per hr. Football helmet: Indirect factory wages Depreciation of plant and equipment $86,000 wr and light $4,000 2,300 12,000 Insurance and property tax