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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:

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%

Sales Budget For the Month Ending March 31 Unit 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 nur Gold Medal Athletic Co. Production Budget For the Month Ending March 31 Units Batting helmet Football helmet Volume Price 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 nur Gold Medal Athletic Co. Production Budget For the Month Ending March 31 Units Batting helmet Football helmet 3. Prepare a direct materials purchases budget for March. For those boxes in which you must enter subtracted or negative numbers use a m 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 . 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

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