PLEASE SHOW THE WORK Budgeted Income Statement and Supporting Budgets The budget director of Gold...
70.2K
Verified Solution
Link Copied!
Question
Accounting
PLEASE SHOW THE WORK
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:
Estimated sales for March:
Batting helmet
1,200 units at $40 per unit
Football helmet
6,500 units at $160 per unit
Estimated inventories at March 1:
Direct materials:
Plastic
90 lbs.
Foam lining
80 lbs.
Finished products:
Batting helmet
40 units at $25 per unit
Football helmet
240 units at $77 per unit
Desired inventories at March 31:
Direct materials:
Plastic
50 lbs.
Foam lining
65 lbs.
Finished products:
Batting helmet
50 units at $25 per unit
Football helmet
220 units at $78 per unit
Direct materials used in production:
In manufacture of batting helmet:
Plastic
1.2 lbs. per unit of product
Foam lining
0.5 lb. per unit of product
In manufacture of football helmet:
Plastic
3.5 lbs. per unit of product
Foam lining
1.5 lbs. per unit of product
Anticipated cost of purchases and beginning and ending inventory of direct materials:
Plastic
$6 per lb.
Foam lining
$4 per lb.
Direct labor requirements:
Batting helmet:
Molding Department
0.2 hr. at $20 per hr.
Assembly Department
0.5 hr. at $14 per hr.
Football helmet:
Molding Department
0.5 hr. at $20 per hr.
Assembly Department
1.8 hrs. at $14 per hr.
Estimated factory overhead costs for March:
Indirect factory wages
$86,000
Depreciation of plant and equipment
12,000
Power and light
4,000
Insurance and property tax
2,300
Estimated operating expenses for March:
Sales salaries expense
$184,300
Advertising expense
87,200
Office salaries expense
32,400
Depreciation expenseoffice equipment
3,800
Telephone expenseselling
5,800
Telephone expenseadministrative
1,200
Travel expenseselling
9,000
Office supplies expense
1,100
Miscellaneous administrative expense
1,000
Estimated other income and expense for March:
Interest revenue
$940
Interest expense
872
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 Volume
Unit Selling Price
Total Sales
Batting helmet
$
$
Football helmet
Total revenue from sales
$
2. Prepare a production budget for March. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Gold Medal Athletic Co. Production Budget For the Month Ending March 31
Units
Batting helmet
Football helmet
Expected units to be sold
Desired inventory, March 31
Total units available
Estimated inventory, March 1
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
$
Total
$
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. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
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
$
Total manufacturing costs
Total work in process during period
$
Cost of goods manufactured
Cost of finished goods available for sale
$
Cost of goods sold
$
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 budgeted income statement for March.
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
$
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!