The budget director of Gold Medal Co., with assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income

The budget director of Gold Medal Co., with 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: 1. Estimated sales for March: Batting helmet     1,200 units at $40 per unit Football helmet   6,500 units at $160 per units 2. Estimated inventories at March 1: Direct materials:               Finished products: Plastic             90 lbs.       Batting helmet       40 units at $25 per unit Foam lining     80 lbs.       Football helmet   240 units at $77 per unit 3. Desired inventories at March 31: Direct materials:               Finished products: Plastic              50 lbs        Batting helmet      50 units at $25 per unit Foam lining     65 lbs        Football helmet   220 units at $78 per unit 4. Direct materials used in production: In manufacture of batting helmet: Plastic             1.2 lbs per unit of product Foam lining    0.5 lb per unit of product In manufacture of football helmet: Plastic            3.5 lbs per unit of product Foam lining    1.5 lbs per unit of product 5. Anticipated cost of purchases and beginning and ending inventory of direct materials: Platic             $6 per lb Foam lining   $4 per lb 6. Direct labor requirements: Batting helmet: Molding department       0.2 hr at $20 per hr Assembly department    0.5 hr at $14 per hr Football helmet: Molding department        0.5 hr at $20 per hr Assembly department     1.8 hrs at $14 per hr 7. Estimated factory overhead costs for March: Indirect factory wages     $86,000        Power and light     $4,000 Depreciation of plant                              Insurance and and equipment                   12,000          property tax              2,300 8. 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 9. Estimated other revenueand expense for March: Interest revenue    $940 Interest expense      872 10. Estimated tax rate: 30% Instructions: 1. Prepare a sales budget for March. 2. Prepare a production budget for March. 3. Prepare a direct material 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 bufget for March. 8. Prepare a budgeted income statement for March. *RESPOND REMAINING SUBPARTS 4 TO 8 Transcribed Image Text: A B C
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75 6.
76
Gold Medal Athletic Co.
77
Cost of Goods Sold Budget
78
For the Month Ending March 31
79
80
81
82
Direct materials:
83
84
Direct materials purchases
85
Cost of direct materials available for use
86
Cost of direct materials placed in production
Direct labor
87
88
89
Factory overhead
90
Total manufacturing costs
Totalwork in process during period
91
92
Cost of goods manufactured
Cost of finished goods available for sale
93
94
$ 551,778
95
Cost of goods sold
96
97
98
Supporting calculations:
Units
Cost
Total
99
100
Finished goods inventory, March 1:
101
Batting helmet
102
Football helmet
103
Total
Finished goods inventory, March 31:
Batting helmet
104
105
106
Football helmet
107
Total
108
Direct materials inventory, March 1
109
Plastic
Foam lining
Total
110
111
112
Direct materials inventory, March 31
Plastic
113
114
Foam lining
115
Total
116
117
1187.
119
Gold Medal Athletic Co.
Selling and Administrative Expenses Budget
For the Month Ending March 31
120
121
122
123
Selling expenses:
124
125
126
127
128
Total selling expenses
2$
286, 300
Administrative expenses:
129
130
130
121
131
132
133
124
134
Total administrative expenses
Totaloperating expenses
135
136
137
129
138
120
139 8.
Gold Medal Athletic Co.
140
141
142
Budgeted Income Statement
For the Month Ending March 31
143
144
144
145
146
Revenue from sales
Cost of goods sold
Gross profit
Operating expenses:
Seling expenses
Administrative expenses
Total operating expenses
147
149
149
150
151
Operating income
Other revenue and expense:
Interest revenue
152
153
154
Interest expense
155
Income before income tax
24
228,900
156
Income tax expense
157
Net income
158
Tab 1- Assignment Instructions
Tab 2- Assignment Data Transcribed Image Text: A
B
E
F
H
K
L
N
1 Instructions
2 Required: Using the information provided in tab 2- assignment data complete the below budgets.
Enter information in all cells highlighted in green. (Missing data includes numbers or headings)
4 Some of the information (highlighted in gray) has been made available to provide guidance.
5
6 1.
7
Gold Medal Athletic Co.
Sales Budget
For the Month Ending March 31
8
9
Unit Sales
Volume
Unit Selling
Price
Total
10
11
Product
Sales
12
13
Batting helmet
14
Football helmet
15
Totalrevenue from sales
2$
1,088,000
16
17
18 FZ.
19
Gold Medal Athletic Co.
Production Budget
For the Month Ending March 31
20
21
Units
22
23
24
Batting
Helmet
Football
Helmet
25
Expected units to be sold
26
27
Totalunits available
28
29
Totalunits to be produced
6,480
30
31
32 3.
33
Gold Medal Athletic Co.
34
Direct Materials Purchases Budget
35
For the Month Ending March 31
36
Plastic
Foam Lining
37
(Ibs.)
(Ibs.)
Total
38
Required units for production:
39
Batting helmet
40
Football helmet
41
Total units available
42
43
44
Totalunits to be purchased
Unit price
Total direct materials to be purchased
45
46
$ 185, 792
47
48
49 4.
Gold Medal Athletic Co.
Direct Labor Cost Budget
50
51
52
For the Month Ending March 31
Molding
Department
Assembly
Department
53
54
Total
55
Hours required for production:
56
Batting helmet
57
Football helmet
58
Total
59
Hourly rate
60
Total direct labor cost
2$
171,766
61
62
63 5.
64
Gold Medal Athletic Co.
Factory Overhead Cost Budget
For the Month Ending March 31
65
66
67
68
Indirect factory wages
Depreciation of plant and equipment
Power and light
69
70
Insurance and property tax
71
72
Total
73
74
75 6.
Gold Medal Athletic Co.
Cost of Goods Sold Budget
For the Month Ending March 31
76
77
78
79
80
81
82
Direct materials:
83
84
Direct materials purchases
Tab 1- Assignment Instructions
Tab 2- Assignment Data

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