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Budgeted Income Statement and Supporting Budgets 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: 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 Inventories at March 1: Direct materials: Plastic 90 lbs. 80 lbs. Foam lining Finished products: Batting helmet 40 units at $25 per unit Football helmet 240 units at $77 per unit c. Desired Inventories at March 31: Direct materials: Plastic 50 lbs. 65 lbs. Foam lining Finished products: 50 units at $25 Activate Windows Batting helmet Previous Next Pasteu products: Batting helmet 50 units at $25 per unit Football helmet 220 units at $78 per unit d. Direct materials used in production: In manufacture of batting helmet: Plastic 1.2 lbs. per unit of product 0.5 lb. per unit of product Foam lining In manufacture of football helmet: 3.5 lbs. per unit Plastic of product 1.5 lbs. per unit Foam lining of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic $6 per lb. Foam lining $4 per lb. f. Direct labor requirements: Batting helmet: 0.2 hr. at $20 per Molding Department hr Activ Goro 7. Direct labor requirements: Batting helmet: Molding Department 0.2 hr. at $20 per hr. 0.5 hr. at $14 per Assembly Department Football helmet: Molding Department 0.5 hr. at $20 per hr. Assembly Department 1.8 hrs. at $14 per hr. $86,000 12,000 g. Estimated factory overhead costs for March: Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax h. Estimated operating expenses for March: Sales salaries expense 4,000 2,300 $184,300 87,200 Advertising expense Office salaries expense 32,400 Depreciation expense-office equipment 3,800 5,800 Act Telephone expense-selling Telephone expense-selling Telephone expense-administrative 5,800 1,200 9,000 1,100 Travel expense-selling 1,000 Office supplies expense Miscellaneous administrative expense i. Estimated other income and expense for March: Interest revenue $940 872 Interest expense 1. Estimated tax rate: 30% Required: 1. Prepare a sales budget for March. Enter all amounts as positive numbers. Gold Medal Athletic Co. Sales Budget For the Month Ending March 31 Unit Sales Unit Selling Volume Price Total Sales 1,210 Batting helmet Football helmet 6,480 Total revenue from sales 2. Prepare a production budget for March. For those boxes in which you must enter subtracted or negative numbers Gold Medal Athletic Co. Production Budget For the Month Ending March 31 Units Batting helmet Football helmet Desired Inventory, March 31 Estimated Inventory, March 1 Expected units to be sold Total units available Total units to be produced 3. Prepare a direct materials purchases budget for March. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Gold Medal Athletic Co. Direct Materials Purchases Budget For the Month Ending March 31 Plastic Foam Lining Total Units required for production: Batting helmet Football helmet Desired units of inventory, March 31 Total units available Estimated units of inventory, March 1 Total units to be purchased Unit price Total direct materials to be purchased 4. Prepare a direct labor cost budget for March. Enter all amounts as positive numbers. Gold Medal Athletic Co. Direct Labor Cost Budget For the Month Ending March 31 Molding Department Assembly Department Total Hours required for production: Batting helmet Football helmet Total Hourly rate Total direct labor cost 5. Prepare a factory overhead cost budget for March. Gold Medal Athletic Co. Factory Overhead Cost Budget For the Month Ending March 31 Advertising expense Indirect factory wages Office salaries expense Office supplies expense Sales salaries expense Gold Medal Athletic Co. Cost of Goods Sold Budget For the Month Ending March 31 Direct materials: Cost of direct materials available for use $$ Cost of direct materials placed in production S$ Total manufacturing costs Total work in process during period Cost of goods manufactured Cost of finished goods available for sale Cost of goods sold Acti 7. Prepare a selling and administrative expenses budget for March. Gold Medal Athletic Co. Selling and Administrative Expenses Budget For the Month Ending March 31 Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total operating expenses 8. Prepare a vuugeleu CUM JULL IT Gold Medal Athletic Co. Budgeted Income Statement For the Month Ending March 31 $ $ $ $ Operating expenses: Total operating expenses Income from operations Other revenue and expense: $$ Income before income tax Net income Budgeted Income Statement and Supporting Budgets 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: 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 Inventories at March 1: Direct materials: Plastic 90 lbs. 80 lbs. Foam lining Finished products: Batting helmet 40 units at $25 per unit Football helmet 240 units at $77 per unit c. Desired Inventories at March 31: Direct materials: Plastic 50 lbs. 65 lbs. Foam lining Finished products: 50 units at $25 Activate Windows Batting helmet Previous Next Pasteu products: Batting helmet 50 units at $25 per unit Football helmet 220 units at $78 per unit d. Direct materials used in production: In manufacture of batting helmet: Plastic 1.2 lbs. per unit of product 0.5 lb. per unit of product Foam lining In manufacture of football helmet: 3.5 lbs. per unit Plastic of product 1.5 lbs. per unit Foam lining of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic $6 per lb. Foam lining $4 per lb. f. Direct labor requirements: Batting helmet: 0.2 hr. at $20 per Molding Department hr Activ Goro 7. Direct labor requirements: Batting helmet: Molding Department 0.2 hr. at $20 per hr. 0.5 hr. at $14 per Assembly Department Football helmet: Molding Department 0.5 hr. at $20 per hr. Assembly Department 1.8 hrs. at $14 per hr. $86,000 12,000 g. Estimated factory overhead costs for March: Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax h. Estimated operating expenses for March: Sales salaries expense 4,000 2,300 $184,300 87,200 Advertising expense Office salaries expense 32,400 Depreciation expense-office equipment 3,800 5,800 Act Telephone expense-selling Telephone expense-selling Telephone expense-administrative 5,800 1,200 9,000 1,100 Travel expense-selling 1,000 Office supplies expense Miscellaneous administrative expense i. Estimated other income and expense for March: Interest revenue $940 872 Interest expense 1. Estimated tax rate: 30% Required: 1. Prepare a sales budget for March. Enter all amounts as positive numbers. Gold Medal Athletic Co. Sales Budget For the Month Ending March 31 Unit Sales Unit Selling Volume Price Total Sales 1,210 Batting helmet Football helmet 6,480 Total revenue from sales 2. Prepare a production budget for March. For those boxes in which you must enter subtracted or negative numbers Gold Medal Athletic Co. Production Budget For the Month Ending March 31 Units Batting helmet Football helmet Desired Inventory, March 31 Estimated Inventory, March 1 Expected units to be sold Total units available Total units to be produced 3. Prepare a direct materials purchases budget for March. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Gold Medal Athletic Co. Direct Materials Purchases Budget For the Month Ending March 31 Plastic Foam Lining Total Units required for production: Batting helmet Football helmet Desired units of inventory, March 31 Total units available Estimated units of inventory, March 1 Total units to be purchased Unit price Total direct materials to be purchased 4. Prepare a direct labor cost budget for March. Enter all amounts as positive numbers. Gold Medal Athletic Co. Direct Labor Cost Budget For the Month Ending March 31 Molding Department Assembly Department Total Hours required for production: Batting helmet Football helmet Total Hourly rate Total direct labor cost 5. Prepare a factory overhead cost budget for March. Gold Medal Athletic Co. Factory Overhead Cost Budget For the Month Ending March 31 Advertising expense Indirect factory wages Office salaries expense Office supplies expense Sales salaries expense Gold Medal Athletic Co. Cost of Goods Sold Budget For the Month Ending March 31 Direct materials: Cost of direct materials available for use $$ Cost of direct materials placed in production S$ Total manufacturing costs Total work in process during period Cost of goods manufactured Cost of finished goods available for sale Cost of goods sold Acti 7. Prepare a selling and administrative expenses budget for March. Gold Medal Athletic Co. Selling and Administrative Expenses Budget For the Month Ending March 31 Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total operating expenses 8. Prepare a vuugeleu CUM JULL IT Gold Medal Athletic Co. Budgeted Income Statement For the Month Ending March 31 $ $ $ $ Operating expenses: Total operating expenses Income from operations Other revenue and expense: $$ Income before income tax Net income

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