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 lb.   Foam lining 80 lb. 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 lb.   Foam lining 65 lb. 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 1.20 lb. per unit of product   Foam lining 0.50 lb. per unit of product In manufacture of football helmet:   Plastic 3.50 lb. per unit of product   Foam lining 1.50 lb. per unit of product Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic $6.00 per lb. Foam lining $4.00 per lb. Direct labor requirements: Batting helmet:   Molding Department 0.20 hr. at $20 per hr.   Assembly Department 0.50 hr. at $14 per hr. Football helmet:   Molding Department 0.50 hr. at $20 per hr.   Assembly Department 1.80 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 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 Estimated other income and expense for March: Interest revenue $940 Interest expense 872 Estimated tax rate: 30% 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. Enter all amounts as positive numbers. Gold Medal Athletic Co. Cost of Goods Sold Budget For the Month Ending March 31       fill in the blank 52     fill in the blank 54   Direct materials:           fill in the blank 56         fill in the blank 58       Cost of direct materials available for use fill in the blank 59         fill in the blank 61       Cost of direct materials placed in production fill in the blank 62       fill in the blank 64       fill in the blank 66     Total manufacturing costs   fill in the blank 67   Total work in process during the period   fill in the blank 68       fill in the blank 70   Cost of goods manufactured     fill in the blank 71 Cost of finished goods available for sale     fill in the blank 72       fill in the blank 74 Cost of goods sold     $fill in the blank 75 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:         Sales salaries expense   fill in the blank 76     Advertising expense   fill in the blank 77     Telephone expense—selling   fill in the blank 78     Travel expense—selling   fill in the blank 79   Total selling expenses     fill in the blank 80 Administrative expenses:         Office salaries expense   fill in the blank 81     Depreciation expense—office equipment   fill in the blank 82     Telephone expense—administrative   fill in the blank 83     Office supplies expense   fill in the blank 84     Miscellaneous administrative expense   fill in the blank 85   Total administrative expenses     fill in the blank 86 Total operating expenses     $fill in the blank 87 8.  Prepare a budgeted income statement for March. Enter all amounts as positive numbers. Gold Medal Athletic Co. Budgeted Income Statement For the Month Ending March 31       fill in the blank 89       fill in the blank 91       fill in the blank 93 Operating expenses:             fill in the blank 95         fill in the blank 97   Total operating expenses     fill in the blank 98 Income from operations     fill in the blank 99 Other income:             fill in the blank 101   Other expenses:             fill in the blank 103 fill in the blank 104 Income before income tax     fill in the blank 105         fill in the blank 107 Net income     $fill in the blank 108

part 3 of previous

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:

1. Estimated sales for March:

   Batting helmet	1,200 units at $40 per unit
   Football helmet	6,500 units at $160 per unit

2. Estimated inventories at March 1:

   Direct materials:
   Plastic	90 lb.
   Foam lining	80 lb.
   Finished products:
   Batting helmet	40 units at $25 per unit
   Football helmet	240 units at $77 per unit

3. Desired inventories at March 31:

   Direct materials:
   Plastic	50 lb.
   Foam lining	65 lb.
   Finished products:
   Batting helmet	50 units at $25 per unit
   Football helmet	220 units at $78 per unit

4. Direct materials used in production:

   In manufacture of batting helmet:
   Plastic	1.20 lb. per unit of product
   Foam lining	0.50 lb. per unit of product
   In manufacture of football helmet:
   Plastic	3.50 lb. per unit of product
   Foam lining	1.50 lb. per unit of product

5. Anticipated cost of purchases and beginning and ending inventory of direct materials:

   Plastic	$6.00 per lb.
   Foam lining	$4.00 per lb.

6. Direct labor requirements:

   Batting helmet:
   Molding Department	0.20 hr. at $20 per hr.
   Assembly Department	0.50 hr. at $14 per hr.
   Football helmet:
   Molding Department	0.50 hr. at $20 per hr.
   Assembly Department	1.80 hrs. at $14 per hr.

7. 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

8. 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

9. Estimated other income and expense for March:

   Interest revenue	$940
   Interest expense	872

10. Estimated tax rate: 30%

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. Enter all amounts as positive numbers.

7.  Prepare a selling and administrative expenses budget for March.

8.  Prepare a budgeted income statement for March. Enter all amounts as positive numbers.