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ber. W Shoe Mart Inc. Cash Budget For the Three Months Ending March 31 January February Estimated cash receipts from: Cash sales 90,000 110,000 March 140,000 Collection of accounts receivable 330,000 420,000 Dividends 20,000 0 0 216,000 283,000 371,000 Total cash receipts Estimated cash payments for: Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes: Note payable (including interest) 100,000 140,000 150,000 o 0 45,000 0 0 0 15,000 0 Income tax 0 0 Dividends 5,000 316,000 438,000 Total cash payments 2,000 Cash increase (decrease) Cash balance at beginning of month Cash balance at end of month 35,000 35,000 35,000 Minimum cash balance Excess (deficiency) Budgeted Income Statement and Supporting Budgets The budget director of Supiter Helmets 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 Har a imated sales for May Bicycle helmet 7,500 units at $24 per unit Motorcycle helmet 5,000 units at $175 per unit b. Estimated Inventories at May 11 Direct materials: Finished products Bicycle helmet 200 units $15 per un Foaming 520 lbs. Motorcycle helmet 100 units at $0 per unit c. Desired Inventories at May 31: Direct materials: Finished products: 2.000 lbs. Bicycle helmet 400 units at $15 per unit Foamining Motorcycle helmet 300 units at $100 per unit d. Direct materials used in production In manufacture of bicydent: 0.90 . per unit of product Foam lining 0.20 ib. per unit of product In manufacture of motorcycle helmet: Plastic 3.50 lbs.per of product Foam lining 1.40 lbs. per unit of product . Anticipated cost of purchases and being and ending inventory of direct materials Plastic $4.40 perib Foaming $0.90 perib eBook Calculator f. Direct labor requirements: Bicycle helmet: Molding Department 0.30 hr. at $15 per hr. Assembly Department 0.10 hr. at $14 per hr. Motorcycle helmet: Molding Department 0.50 hr. at $15 per hr. Assembly Department 0.40 hr. at $14 per hr. g. Estimated factory overhead costs for May: Indirect factory wages $125,000 $23,000 Depreciation of plant and equipment Power and light Insurance and property tax 45,000 11,000 h. Estimated operating expenses for May: Sales salaries expense Advertising expense $175,000 120,000 Office salaries expense 92,000 Depreciation expense-office equipment 6,000 Miscellaneous expense-selling 5,000 Utilities expense-administrative 3,000 50,000 Travel expense-selling Office supplies expense Miscellaneous administrative expense 2,500 1,500 1. Estimated other income and expense for May: Interest revenue $14,560 Interest expense 3,000 j. Estimated tax rate: 25% 4200 6. Prepare a cost of goods sold budget for May. Work in process at the beginning of May is estimated to be $4,200, and work in process at the end of May is desired to be 53.800 Jupiter Helmets Inc Cost of Goods Sold Budget For the Month Ending May 31 Finished goods inventory, May 1 12.000 Work in process entory, May 1 Direct materials: Direct materials inventory, May 1 6,90 Direct materials purchases Cost of direct materias watable for use Less Direct materials inventory, May 31 SRO Cost of direct materials placed in production Direct labor 200.000 Factory overhead Total manufacturing costs Total work in process during period 3.00 Less: Work in proces ventory. Hay Cost of goods manufactured Cost of wished goods avable for sale Le Finished goods wory. May Cost of goods sold eBook Calculator 8. Prepare a budgeted income statement for May. Jupiter Helmets Inc. Budgeted Income Statement For the Month Ending May 31 Revenue from sales Cost of goods sold Gross profit Operating expenses: Selling expenses 350,000 Administrative expenses 105,000 Total operating expenses 455,000 Income from operations Other income: Interest revenue Other expenses: Interest expense 14,560 3,000 11,560 Income before income tax Income tax expense Net income HTI 1. Prepare a sales budget for May. Jupiter Helmets Inc. Sales Budget For the Month Ending May 31 Unit Sales Volume Unit Selling Price Total Sales 7,500 24.00 180,000 Bicycle helmet Motorcycle helmet 5,000 175 875,000 Total revenue from sales 1,055,000 Feedback Checklay Work

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