Budgeted Income Statement and Supporting Budgets The budget director of Jupiter Helmets Inc., 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 May: a. Estimated sales for May: Bicycle helmet 9,500 units at $24 per unit Motorcycle helmet 6,250 units at $185 per unit b. Estimated inventories at May 1: Direct materials: Finished products: Plastic 1,480 lbs. Bicycle helmet 200 units at $15 per unit Foam lining 520 lbs. Motorcycle helmet 100 units at $90 per unit c. Desired inventories at May 31: Direct materials: Finished products: Plastic 2,000 lbs. Bicycle helmet 400 units at $15 per unit Foam lining 800 lbs. Motorcycle helmet 300 units at $100 per unit d. Direct materials used in production: In manufacture of bicycle helmet: Plastic 0.90 lb. per unit of product Foam lining 0.20 lb. per unit of product In manufacture of motorcycle helmet: Plastic 3.50 lbs. per unit of product Foam lining 1.40 lbs. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic $4.40 per lb. Foam lining $0.90 per lb. f. Direct labor requirements: Bicycle helmet: Molding Department 0.30 hr. at $15 per hr. Assembly Department 0.10 hr. at $14 per hr. Motorcycle helmet: Molding Department 0.50 hr. at $15 per hr. Assembly Department 0.40 hr. at $14 per hr. g. Estimated factory overhead costs for May: Indirect factory wages $125,000 Power and light $23,000 Depreciation of plant and equipment 45,000 Insurance and property tax 11,000 h. Estimated operating expenses for May: Sales salaries expense $175,000 Advertising expense 120,000 Office salaries expense 92,000 Depreciation expense—office equipment 6,000 Miscellaneous expense—selling 5,000 Utilities expense—administrative 3,000 Travel expense—selling 50,000 Office supplies expense 2,500 Miscellaneous administrative expense 1,500 i. Estimated other income and expense for May: Interest revenue $14,560 Interest expense 3,000 Prepare a direct labor cost budget for May. Jupiter Helmets Inc.Direct Labor Cost BudgetFor the Month Ending May 31 Molding Department Assembly Department Total Hours required for production: Bicycle helmet fill in the blank bfe82a0c7fd3ffb_1 fill in the blank bfe82a0c7fd3ffb_2 Motorcycle helmet fill in the blank bfe82a0c7fd3ffb_3 fill in the blank bfe82a0c7fd3ffb_4 Total fill in the blank bfe82a0c7fd3ffb_5 fill in the blank bfe82a0c7fd3ffb_6 Hourly rate $fill in the blank bfe82a0c7fd3ffb_7 $fill in the blank bfe82a0c7fd3ffb_8 Total direct labor cost $fill in the blank bfe82a0c7fd3ffb_9 $fill in the blank bfe82a0c7fd3ffb_10 $fill in the blank bfe82a0c7fd3ffb_11 Prepare a factory overhead cost budget for May. Jupiter Helmets Inc.Factory Overhead Cost BudgetFor the Month Ending May 31 Indirect factory wages $fill in the blank 163fa8f9f032004_1 Depreciation of plant and equipment fill in the blank 163fa8f9f032004_2 Power and light fill in the blank 163fa8f9f032004_3 Insurance and property tax fill in the blank 163fa8f9f032004_4 Total $fill in the blank 163fa8f9f032004_5

Budgeted Income Statement and Supporting Budgets The budget director of Jupiter Helmets Inc., 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 May: a. Estimated sales for May: Bicycle helmet 9,500 units at $24 per unit Motorcycle helmet 6,250 units at $185 per unit b. Estimated inventories at May 1: Direct materials: Finished products: Plastic 1,480 lbs. Bicycle helmet 200 units at $15 per unit Foam lining 520 lbs. Motorcycle helmet 100 units at $90 per unit c. Desired inventories at May 31: Direct materials: Finished products: Plastic 2,000 lbs. Bicycle helmet 400 units at $15 per unit Foam lining 800 lbs. Motorcycle helmet 300 units at $100 per unit d. Direct materials used in production: In manufacture of bicycle helmet: Plastic 0.90 lb. per unit of product Foam lining 0.20 lb. per unit of product In manufacture of motorcycle helmet: Plastic 3.50 lbs. per unit of product Foam lining 1.40 lbs. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic $4.40 per lb. Foam lining $0.90 per lb. f. Direct labor requirements: Bicycle helmet: Molding Department 0.30 hr. at $15 per hr. Assembly Department 0.10 hr. at $14 per hr. Motorcycle helmet: Molding Department 0.50 hr. at $15 per hr. Assembly Department 0.40 hr. at $14 per hr. g. Estimated factory overhead costs for May: Indirect factory wages $125,000 Power and light $23,000 Depreciation of plant and equipment 45,000 Insurance and property tax 11,000 h. Estimated operating expenses for May: Sales salaries expense $175,000 Advertising expense 120,000 Office salaries expense 92,000 Depreciation expense—office equipment 6,000 Miscellaneous expense—selling 5,000 Utilities expense—administrative 3,000 Travel expense—selling 50,000 Office supplies expense 2,500 Miscellaneous administrative expense 1,500 i. Estimated other income and expense for May: Interest revenue $14,560 Interest expense 3,000 Prepare a direct labor cost budget for May. Jupiter Helmets Inc.Direct Labor Cost BudgetFor the Month Ending May 31 Molding Department Assembly Department Total Hours required for production: Bicycle helmet fill in the blank bfe82a0c7fd3ffb_1 fill in the blank bfe82a0c7fd3ffb_2 Motorcycle helmet fill in the blank bfe82a0c7fd3ffb_3 fill in the blank bfe82a0c7fd3ffb_4 Total fill in the blank bfe82a0c7fd3ffb_5 fill in the blank bfe82a0c7fd3ffb_6 Hourly rate $fill in the blank bfe82a0c7fd3ffb_7 $fill in the blank bfe82a0c7fd3ffb_8 Total direct labor cost $fill in the blank bfe82a0c7fd3ffb_9 $fill in the blank bfe82a0c7fd3ffb_10 $fill in the blank bfe82a0c7fd3ffb_11 Prepare a factory overhead cost budget for May. Jupiter Helmets Inc.Factory Overhead Cost BudgetFor the Month Ending May 31 Indirect factory wages $fill in the blank 163fa8f9f032004_1 Depreciation of plant and equipment fill in the blank 163fa8f9f032004_2 Power and light fill in the blank 163fa8f9f032004_3 Insurance and property tax fill in the blank 163fa8f9f032004_4 Total $fill in the blank 163fa8f9f032004_5

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter22: Budgeting

Section: Chapter Questions

Problem 3PB: Budgeted income statement and supporting budgets The budget director of Gold Medal Athletic Co.,...

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Question

Budgeted Income Statement and Supporting Budgets

The budget director of Jupiter Helmets Inc., 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 May:

a. Estimated sales for May:

Bicycle helmet	9,500 units at $24 per unit
Motorcycle helmet	6,250 units at $185 per unit

b. Estimated inventories at May 1:

Direct materials:			Finished products:
Plastic	1,480	lbs.	Bicycle helmet	200 units at $15 per unit
Foam lining	520	lbs.	Motorcycle helmet	100 units at $90 per unit

c. Desired inventories at May 31:

Direct materials:			Finished products:
Plastic	2,000	lbs.	Bicycle helmet	400 units at $15 per unit
Foam lining	800	lbs.	Motorcycle helmet	300 units at $100 per unit

d. Direct materials used in production:

In manufacture of bicycle helmet:
Plastic		0.90 lb. per unit of product
Foam lining		0.20 lb. per unit of product
In manufacture of motorcycle helmet:
Plastic		3.50 lbs. per unit of product
Foam lining		1.40 lbs. per unit of product

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

Plastic		$4.40 per lb.
Foam lining		$0.90 per lb.

f. Direct labor requirements:

Bicycle helmet:
Molding Department		0.30 hr. at $15 per hr.
Assembly Department		0.10 hr. at $14 per hr.
Motorcycle helmet:
Molding Department		0.50 hr. at $15 per hr.
Assembly Department		0.40 hr. at $14 per hr.

g. Estimated factory overhead costs for May:

Indirect factory wages		$125,000			Power and light		$23,000
Depreciation of plant and equipment		45,000			Insurance and property tax		11,000

h. Estimated operating expenses for May:

Sales salaries expense		$175,000
Advertising expense		120,000
Office salaries expense		92,000
Depreciation expense—office equipment		6,000
Miscellaneous expense—selling		5,000
Utilities expense—administrative		3,000
Travel expense—selling		50,000
Office supplies expense		2,500
Miscellaneous administrative expense		1,500

i. Estimated other income and expense for May:

Interest revenue		$14,560
Interest expense		3,000

Prepare a direct labor cost budget for May.

Jupiter Helmets Inc.Direct Labor Cost BudgetFor the Month Ending May 31

	Molding Department	Assembly Department	Total
Hours required for production:
Bicycle helmet	fill in the blank bfe82a0c7fd3ffb_1	fill in the blank bfe82a0c7fd3ffb_2
Motorcycle helmet	fill in the blank bfe82a0c7fd3ffb_3	fill in the blank bfe82a0c7fd3ffb_4
Total	fill in the blank bfe82a0c7fd3ffb_5	fill in the blank bfe82a0c7fd3ffb_6
Hourly rate	$fill in the blank bfe82a0c7fd3ffb_7	$fill in the blank bfe82a0c7fd3ffb_8
Total direct labor cost	$fill in the blank bfe82a0c7fd3ffb_9	$fill in the blank bfe82a0c7fd3ffb_10	$fill in the blank bfe82a0c7fd3ffb_11

Prepare a factory overhead cost budget for May.

Jupiter Helmets Inc.Factory Overhead Cost BudgetFor the Month Ending May 31

Indirect factory wages	$fill in the blank 163fa8f9f032004_1
Depreciation of plant and equipment	fill in the blank 163fa8f9f032004_2
Power and light	fill in the blank 163fa8f9f032004_3
Insurance and property tax	fill in the blank 163fa8f9f032004_4
Total	$fill in the blank 163fa8f9f032004_5

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