Homework Help is Here – Start Your Trial Now!
Business
Accounting
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. I have marked a yellow x on what i have done already. I DO NOT NEED HELP WITH WHAT IS CROSSED IN YELLOW (PARTS 1-3) I NEED PARTS 4-6. THIS IS IS IS THE ANSWER TO PARTS 1-3  Analysis and Calculation: 1) Gold Medal Athletic Co.,  Sales Budget: For the month ended March: Product Sales Volume Sale Price per unit Sales, $ Batting helmet  1,200 units $40  $ 48,000 Football helmet  6,500 units $160  $1,040,000 Total revenue from sales      $ 1,088,000   2) Production Budget:   Batting Football   Helmet Helmet Expected units to be sold  1,200  6,500 Add: desired Ending inventory  50  220 Total  1,250  6,720 Less: Beginning estimated inventory  40  240 Total units to be produced  1,210  6,480   Direct Material Purchase Budget:   Plastic Foam Lining      (lbs.)  (lbs.) Total Required units for production:       Batting helmet  1,452  605   Football helmet  22,680  9,720   Add: ending desired inventory of Raw material  50  65   Total  24,182  10,390   Less: estimated inventory, beginning Raw material  90  80   Total units to be purchased, (a)  24,092  10,310   Unit price, (b) $6.00 $4.00   Total direct materials to be purchased, (a * b)  $ 144,552

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. I have marked a yellow x on what i have done already. I DO NOT NEED HELP WITH WHAT IS CROSSED IN YELLOW (PARTS 1-3) I NEED PARTS 4-6. THIS IS IS IS THE ANSWER TO PARTS 1-3  Analysis and Calculation: 1) Gold Medal Athletic Co.,  Sales Budget: For the month ended March: Product Sales Volume Sale Price per unit Sales, $ Batting helmet  1,200 units $40  $ 48,000 Football helmet  6,500 units $160  $1,040,000 Total revenue from sales      $ 1,088,000   2) Production Budget:   Batting Football   Helmet Helmet Expected units to be sold  1,200  6,500 Add: desired Ending inventory  50  220 Total  1,250  6,720 Less: Beginning estimated inventory  40  240 Total units to be produced  1,210  6,480   Direct Material Purchase Budget:   Plastic Foam Lining      (lbs.)  (lbs.) Total Required units for production:       Batting helmet  1,452  605   Football helmet  22,680  9,720   Add: ending desired inventory of Raw material  50  65   Total  24,182  10,390   Less: estimated inventory, beginning Raw material  90  80   Total units to be purchased, (a)  24,092  10,310   Unit price, (b) $6.00 $4.00   Total direct materials to be purchased, (a * b)  $ 144,552

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter22: Budgeting
Section: Chapter Questions
Problem 2PA: Sales, production, direct materials purchases, and direct labor cost budgets The budget director of...
See similar textbooks
icon
Related questions
icon
Concept explainers
Question

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. I have marked a yellow x on what i have done already. I DO NOT NEED HELP WITH WHAT IS CROSSED IN YELLOW (PARTS 1-3) I NEED PARTS 4-6. THIS IS IS IS THE ANSWER TO PARTS 1-3 

Analysis and Calculation:

1)

Gold Medal Athletic Co., 

Sales Budget:

For the month ended March:

Product Sales Volume Sale Price per unit Sales, $
Batting helmet  1,200 units $40  $ 48,000
Football helmet  6,500 units $160  $1,040,000
Total revenue from sales      $ 1,088,000

 

2)

Production Budget:

  Batting Football
  Helmet Helmet
Expected units to be sold  1,200  6,500
Add: desired Ending inventory  50  220
Total  1,250  6,720
Less: Beginning estimated inventory  40  240
Total units to be produced  1,210  6,480

 

Direct Material Purchase Budget:

  Plastic Foam Lining  
   (lbs.)  (lbs.) Total
Required units for production:      
Batting helmet  1,452  605  
Football helmet  22,680  9,720  
Add: ending desired inventory of Raw material  50  65  
Total  24,182  10,390  
Less: estimated inventory, beginning Raw material  90  80  
Total units to be purchased, (a)  24,092  10,310  
Unit price, (b) $6.00 $4.00  
Total direct materials to be purchased, (a * b)  $ 144,552  $ 41,240  $ 185,792
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 at $25 per unit 240 units at $77 per unit 90 lb 80 Ib. S. 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 Ib. Foam lining.. . 65 Ib. 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: 3.50 lb. per unit of product 1.50 lb. per unit of product Plastic. 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. 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 $4,000 Power and light Insurance and property tax Depreciation of plant and equipment 12,000 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 3,800 5,800 Telephone expense-administrative Travel expense-selling Office supplies expense 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 j. 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.
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 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 at $25 per unit 240 units at $77 per unit 90 lb 80 Ib. S. 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 Ib. Foam lining.. . 65 Ib. 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: 3.50 lb. per unit of product 1.50 lb. per unit of product Plastic. 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. 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 $4,000 Power and light Insurance and property tax Depreciation of plant and equipment 12,000 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 3,800 5,800 Telephone expense-administrative Travel expense-selling Office supplies expense 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 j. 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.
GOLD MEDAL ATHLETIC CO. Sales Budget For the Month Ending March 31 Unit Sales Unit Selling Tet Wolume Price Total revenue OLDMALA nc co. F te Expected units to be sold Total units required Total units to be produced ATHLETIC CO DeM rchases Budg Ending March 31 GOLD MEDAL ATHLETIC CO. Selling and Administrative Expenses Budget Plastic For the Month Ending March 31 Pounds required for produ Batting helmet Footbal helmet Selling expenses: Total pounds to be purh 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 Footbal 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. Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax Budgeted Income Statement For the Month Ending March 31 Total Revenue from sales Cost of goods sold GOLD MEDAL ATHLETIC Co. Cost of Goods Sold Budoet For the Month Ending March 31 Gross profit Operating expenses: Selling expenses Administrative expenses Direct materials Total operating expenses Income from operations Direct materials purchases Cost of direct materials available for use Other revenue and expense: Cost of direct materials placed in production Direct labor Interest revenue Factory overhead Interest expense Total manufacturing costs Total work in process during period Income before income tax Income tax expense Cost of goods manufactured Cost of finished goods available for sale Net income Cost of goods sold Supporting calculations: Finished goods inventory, March 1: Batting helmet Football helmet Total Finished goods inventory, March 31: Batting helmet Footbal helmet Total Direct materials inventory, March 1 Plastic Foam lining Total Direct materials inventory, March 31 Plastic Foam lining Total
Transcribed Image Text:GOLD MEDAL ATHLETIC CO. Sales Budget For the Month Ending March 31 Unit Sales Unit Selling Tet Wolume Price Total revenue OLDMALA nc co. F te Expected units to be sold Total units required Total units to be produced ATHLETIC CO DeM rchases Budg Ending March 31 GOLD MEDAL ATHLETIC CO. Selling and Administrative Expenses Budget Plastic For the Month Ending March 31 Pounds required for produ Batting helmet Footbal helmet Selling expenses: Total pounds to be purh 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 Footbal 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. Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax Budgeted Income Statement For the Month Ending March 31 Total Revenue from sales Cost of goods sold GOLD MEDAL ATHLETIC Co. Cost of Goods Sold Budoet For the Month Ending March 31 Gross profit Operating expenses: Selling expenses Administrative expenses Direct materials Total operating expenses Income from operations Direct materials purchases Cost of direct materials available for use Other revenue and expense: Cost of direct materials placed in production Direct labor Interest revenue Factory overhead Interest expense Total manufacturing costs Total work in process during period Income before income tax Income tax expense Cost of goods manufactured Cost of finished goods available for sale Net income Cost of goods sold Supporting calculations: Finished goods inventory, March 1: Batting helmet Football helmet Total Finished goods inventory, March 31: Batting helmet Footbal helmet Total Direct materials inventory, March 1 Plastic Foam lining Total Direct materials inventory, March 31 Plastic Foam lining Total
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS