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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: Excel

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: Excel

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer part 8 from this practice problem

7. 8. Selling expenses: GOLD MEDAL ATHLETIC CO. Selling and Administrative Expenses Budget For the Month Ending March 31 Sales salaries expense Advertising expense Travel expense - selling Telephone expense - selling Total selling expenses Administrative expenses: Office salaries expense Depr. expense - office equip. Telephone expense - administrative Office supplies expense Miscellaneous admin. expense Total administrative expenses Total operating expenses Revenue from sales Cost of goods sold Gross profit Operating expenses: Selling expenses Administrative expenses Total operating expenses GOLD MEDAL ATHLETIC CO. Budgeted Income Statement For the Month Ending March 31 Income from operations Other revenue and expense: Interest revenue Interest expense Income before income tax Income tax expense Net income $ 184,300 87,200 9,000 5,800 $ 32,400 3,800 1,200 1,100 1,000 $ 286,300 39,500 $ 286,300 39,500 $ 325,800 325,800
Transcribed Image Text:7. 8. Selling expenses: GOLD MEDAL ATHLETIC CO. Selling and Administrative Expenses Budget For the Month Ending March 31 Sales salaries expense Advertising expense Travel expense - selling Telephone expense - selling Total selling expenses Administrative expenses: Office salaries expense Depr. expense - office equip. Telephone expense - administrative Office supplies expense Miscellaneous admin. expense Total administrative expenses Total operating expenses Revenue from sales Cost of goods sold Gross profit Operating expenses: Selling expenses Administrative expenses Total operating expenses GOLD MEDAL ATHLETIC CO. Budgeted Income Statement For the Month Ending March 31 Income from operations Other revenue and expense: Interest revenue Interest expense Income before income tax Income tax expense Net income $ 184,300 87,200 9,000 5,800 $ 32,400 3,800 1,200 1,100 1,000 $ 286,300 39,500 $ 286,300 39,500 $ 325,800 325,800
The budget director of Gold Medal Athletic Co., with the assistance of the controller, treasurer, production manager, and sales manager, has Excel gathered the following data for use in developing the budgeted income statement for March: a. Estimated sales for March: Batting helmet Football helmet b. Estimated inventories at March 1: Direct materials: Plastic...... Foam lining.... 90 lb. 80 lb. Direct materials: Plastic..... Foam lining... c. Desired inventories at March 31: 50 lb. 65 lb. Finished products: Batting helmet........ Football helmet... In manufacture of batting helmet: Plastic.... Foam lining.... In manufacture of football helmet: Plastic. Foam lining. d. Direct materials used in production: 1,200 units at $40 per unit 6,500 units at $160 per unit Finished products: Batting helmet......... Football helmet........ 40 units at $25 per unit 240 units at $77 per unit 50 units at $25 per unit 220 units at $78 per unit 1.20 lb. per unit of product 0.50 lb. per unit of product 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: $6.00 per lb. $4.00 per lb. Plastic.... Foam lining. f. Direct labor requirements: Batting helmet: Molding Department. Assembly Department. Football helmet: Molding Department. Assembly Department. g. Estimated factory overhead costs for March: Indirect factory wages Depreciation of plant and equipment h. Estimated operating expenses for March: Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense-selling Office supplies expense Miscellaneous administrative expense Interest revenue Interest expense $86,000 12,000 j. Estimated tax rate: 30% i. Estimated other income and expense for March: $940 872 $184,300 87,200 32,400 3,800 5.800 1,200 9,000 1,100 1,000 0.20 hr. at $20 per hr. 0.50 hr. at $14 per hr. Power and light Insurance and property tax 0.50 hr. at $20 per hr. 1.80 hrs. at $14 per hr. $4,000 2,300
Transcribed Image Text:The budget director of Gold Medal Athletic Co., with the assistance of the controller, treasurer, production manager, and sales manager, has Excel gathered the following data for use in developing the budgeted income statement for March: a. Estimated sales for March: Batting helmet Football helmet b. Estimated inventories at March 1: Direct materials: Plastic...... Foam lining.... 90 lb. 80 lb. Direct materials: Plastic..... Foam lining... c. Desired inventories at March 31: 50 lb. 65 lb. Finished products: Batting helmet........ Football helmet... In manufacture of batting helmet: Plastic.... Foam lining.... In manufacture of football helmet: Plastic. Foam lining. d. Direct materials used in production: 1,200 units at $40 per unit 6,500 units at $160 per unit Finished products: Batting helmet......... Football helmet........ 40 units at $25 per unit 240 units at $77 per unit 50 units at $25 per unit 220 units at $78 per unit 1.20 lb. per unit of product 0.50 lb. per unit of product 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: $6.00 per lb. $4.00 per lb. Plastic.... Foam lining. f. Direct labor requirements: Batting helmet: Molding Department. Assembly Department. Football helmet: Molding Department. Assembly Department. g. Estimated factory overhead costs for March: Indirect factory wages Depreciation of plant and equipment h. Estimated operating expenses for March: Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense-selling Office supplies expense Miscellaneous administrative expense Interest revenue Interest expense $86,000 12,000 j. Estimated tax rate: 30% i. Estimated other income and expense for March: $940 872 $184,300 87,200 32,400 3,800 5.800 1,200 9,000 1,100 1,000 0.20 hr. at $20 per hr. 0.50 hr. at $14 per hr. Power and light Insurance and property tax 0.50 hr. at $20 per hr. 1.80 hrs. at $14 per hr. $4,000 2,300
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