PR 22-3B Budgeted income statement and supporting budgets OBJ. 4 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: 1,200 units at $40 per unit 6,500 units at $160 per unit Batting helmet Football helmet. (Continued) b. Estimated inventories at March 1: Direct materials: Plastic. . Foam lining Finished products Batting helmet... Football helmet.... 40 units $25 per unit 90 lb 240 units at $77 per unit 80 lb. S. Desired inventories at March 31: Direct materials: Finished products: Batting helmet.... . Football helmet... Plastic....... 50 units at $25 per unit 50 lb. Foam lining. . . 220 units at S78 per unit 65 lb. d. Direct materials used in production: In manufacture of batting helmet: 1.20 lb. per unit of product 0.50 lb. per unit of product Plastic.... Foam lining.. .. In manufacture of football helmet: Plastic..... Foam lining. 3.50 lb. per unit of product 1.50 lb. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic $6.00 per Ib. $4.00 per Ib. Foam lining f. Direct labor requirements: Batting helmet: Molding Department.. Assembly Department. 0.20 hr. at $20 per hr. 0.50 hr. at $14 per hr. Football helmet: Molding Department. Assembly Department...... 0.50 hr. at $20 per hr. 1.80 hrs. at $14 per hr. g. Estimated factory overhead costs for March: Indirect factory wages $86,000 Power and light $4,000 Depreciation of plant and equipment 12,000 Insurance and property tax 2,300 h. Estimated operating expenses for March: Sales salaries expense $184.300 Advertising expense Office salaries expense 87,200 32,400 Depreciation expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense-selling 3,800 5,800 1,200 9,000 Office supplies expense 1,100 Miscellaneous administrative expense 1,000 i. Estimated other income and expense for March: Interest revenue $940 Interest expense 872 i. Estimated tax rate: 30% Instructions 1. Prepare a sales budget for March. 2. Prepare a production budget for March. 3. Prepare a direct materials purchases budget for March. for March
PR 22-3B Budgeted income statement and supporting budgets OBJ. 4 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: 1,200 units at $40 per unit 6,500 units at $160 per unit Batting helmet Football helmet. (Continued) b. Estimated inventories at March 1: Direct materials: Plastic. . Foam lining Finished products Batting helmet... Football helmet.... 40 units $25 per unit 90 lb 240 units at $77 per unit 80 lb. S. Desired inventories at March 31: Direct materials: Finished products: Batting helmet.... . Football helmet... Plastic....... 50 units at $25 per unit 50 lb. Foam lining. . . 220 units at S78 per unit 65 lb. d. Direct materials used in production: In manufacture of batting helmet: 1.20 lb. per unit of product 0.50 lb. per unit of product Plastic.... Foam lining.. .. In manufacture of football helmet: Plastic..... Foam lining. 3.50 lb. per unit of product 1.50 lb. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic $6.00 per Ib. $4.00 per Ib. Foam lining f. Direct labor requirements: Batting helmet: Molding Department.. Assembly Department. 0.20 hr. at $20 per hr. 0.50 hr. at $14 per hr. Football helmet: Molding Department. Assembly Department...... 0.50 hr. at $20 per hr. 1.80 hrs. at $14 per hr. g. Estimated factory overhead costs for March: Indirect factory wages $86,000 Power and light $4,000 Depreciation of plant and equipment 12,000 Insurance and property tax 2,300 h. Estimated operating expenses for March: Sales salaries expense $184.300 Advertising expense Office salaries expense 87,200 32,400 Depreciation expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense-selling 3,800 5,800 1,200 9,000 Office supplies expense 1,100 Miscellaneous administrative expense 1,000 i. Estimated other income and expense for March: Interest revenue $940 Interest expense 872 i. Estimated tax rate: 30% Instructions 1. Prepare a sales budget for March. 2. Prepare a production budget for March. 3. Prepare a direct materials purchases budget for March. for March
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hello i have attached two pictures. They are both used together to answer the question. The first picture is the information to use too answer the question. The second attachment is the for the answer. I hope it is understandable and whoever answer this can please explain how they got the answers. I need the help
Transcribed Image Text:1.
GOLD MEDAL ATHLETIC CO.
Sales Budget
For the Month Ending March 31
Unit Sales
Unit Selling
Total
Product
Volume
Price
Sales
Batting helmet
Football helmet
Total revenue from sales
2.
GOLD MEDAL ATHLETIC CO.
Production Budget
For the Month Ending March 31
Units
Batting
Football
Helmet
Helmet
Expected units to be sold
Total units required
Total units to be produced
GOLD MEDAL ATHLETIC CO.
GOLD MEDAL ATHLETIC Co.
Direct Materials Purchases Budget
For the Month Ending March 31
Selling and Administrative Expenses Budget
For the Month Ending March 31
Plastic
Foam Lining
(Ibs.)
(Ibs.)
Total
Pounds required for production:
Batting helmet
Selling expenses:
Football helmet
Total pounds required
Total pounds to be purchased
Unit price (per pound)
Total direct materials to be purchased
Total selling expenses
Administrative expenses:
GOLD MEDAL ATHLETIC CO.
Direct Labor Cost Budget
For the Month Ending March 31
Molding
Assembly
Department
Department
Total
Hours required for production:
Batting helmet
Football helmet
Total hours required
Total administrative expenses
Hourly rate
Total direct labor cost
Total operating expenses
GOLD MEDAL ATHLETIC CO.
Factory Overhead Cost Budget
For the Month Ending March 31
GOLD MEDAL ATHLETIC CO.
Budgeted Income Statement
For the Month Ending March 31
Indirect factory wages
Depreciation of plant and equipment
Power and light
Insurance and property tax
Total.
Revenue from sales
Cost of goods sold
GOLD MEDAL ATHLETIC CO.
Gross profit
Cost of Goods Sold Budget
For the Month Ending March 31
Operating expenses:
Selling expenses
Direct materials:
Administrative expenses
Total operating expenses
Direct materials purchases
Cost of direct materials available for use
Income from operations
Other revenue and expense:
Cost of direct materials placed
production
Direct labor
Interest revenue
Factory overhead
Total manufacturing costs
Total work in process during period
Interest expense
Income before income tax
Cost of goods manufactured
Income tax expense
Cost of finished goods available for sale
Net income
Cost of goods sold
Supporting calculations:
Units
Cost
Total
Finished goods inventory, March 1:
Batting helmet
Football helmet
Total
Finished goods inventory, March 31:
Batting helmet
Football helmet
Total
Direct materials inventory, March 1
Plastic
Foam lining
Total
Direct materials inventory, March 31
Plastic
Foam lining
Total
Transcribed Image Text:PR 22-3B Budgeted income statement and supporting budgets
OBJ. 4
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:
1,200 units at $40 per unit
Batting helmet.
6,500 units at $160 per unit
Football helmet
(Continued)
b. Estimated inventories at March 1:
Direct materials:
Plastic.... .
Foam lining.. .
Finished products:
Batting helmet....
Football helmet....
40 units at $25 per unit
240 units at $77 per unit
90 lb.
80 Ib.
C. Desired inventories at March 31:
Direct materials:
Finished products:
Batting helmet..
Football helmet.....
50 units at $25 per unit
220 units at $78 per unit
Plastic..... .
50 lb.
65 lb.
Foam lining.. .
d. Direct materials used in production:
In manufacture of batting helmet:
1.20 lb. per unit of product
0.50 lb. per unit of product
Plastic........
Foam lining....... .. .
In manufacture of football helmet:
Plastic.
3.50 lb. per unit of product
1.50 lb. per unit of product
Foam lining
e. Anticipated cost of purchases and beginning and ending inventory of direct materials:
Plastic..
$6.00 per Ib.
$4.00 per Ib.
Foam lining
f. Direct labor requirements:
Batting helmet:
Molding Department.
Assembly Department.
Football helmet:
0.20 hr. at $20 per hr.
0.50 hr. at $14 per hr.
Molding Department......
Assembly Department.....
0.50 hr. at $20 per hr.
1.80 hrs. at $14 per hr.
g. Estimated factory overhead costs for March:
Indirect factory wages
$86,000
Power and light
$4,000
Depreciation of plant and equipment
12,000
Insurance and property tax
2,300
h. Estimated operating expenses for March:
Sales salaries expense
$184,300
Advertising expense
Office salaries expense
87,200
32,400
Depreciation expense-office equipment
Telephone expense-selling
Telephone expense-administrative
Travel expense-selling
Office supplies expense
3,800
5,800
1,200
9,000
1,100
Miscellaneous administrative expense
1,000
i. Estimated other income and expense for March:
Interest revenue
$940
Interest expense
872
i. Estimated tax rate: 30%
Instructions
1. Prepare a sales budget for March.
2. Prepare a production budget for March.
3. Prepare a direct materials purchases budget for March.
4. Prepare a direct labor cost budget for March.
5. Prepare a factory overhead cost budget for March.
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.
7. Prepare a selling and administrative expenses budget for March.
8. Prepare a budgeted income statement for March.
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