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% Gold Medal Athletic Co. Production Budget For the Month Ending March 31 Units Batting helmet Football helmet Expected units to be sold_______ 8f_____________9Plus desired inventory, March 31fill in the blank 10fill in the blank 11 Total units requiredfill in the blank 12fill in the blank 13Less estimated inventory, March 1fill in the blank 14fill in the blank 15Total units to be producedfill in the blank 16fill in the blank 17

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% Gold Medal Athletic Co. Production Budget For the Month Ending March 31 Units Batting helmet Football helmet Expected units to be sold_ 8f_______9Plus desired inventory, March 31fill in the blank 10fill in the blank 11 Total units requiredfill in the blank 12fill in the blank 13Less estimated inventory, March 1fill in the blank 14fill in the blank 15Total units to be producedfill in the blank 16fill in the blank 17

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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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%

Gold Medal Athletic Co.
Production Budget
For the Month Ending March 31 Units

Batting helmet Football helmet

Expected units to be sold_______ 8f_____________9Plus desired inventory, March 31fill in the blank 10fill in the blank 11 Total units requiredfill in the blank 12fill in the blank 13Less estimated inventory, March 1fill in the blank 14fill in the blank 15Total units to be producedfill in the blank 16fill in the blank 17

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

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

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

Indirect factory wages	$86,000
Depreciation of plant and equipment	12,000
Power and light	4,000
Insurance and property tax	2,300