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 un Football heimel 6.500 units at $160 per unit Estimated inventories at March 1 Direct materials Finished products Plastic 40 units at $25 per unit Foam tining 240 units at $77 per unit Desired inventories at March 31 Direct materials Plast 50 units at $25 per unit 220 units at $78 per unit Foam Ining Direct materials used in production In manufacture of bating helt Plastic 12 bs per unit of product Foamining 0.5 per unit of product in manufacture of footballheimet Plastic 3.5 tbs per unit of product Foam Ining 1.5 lbs per unit of product Anticipated cost of purchases and beginning and ending inventory of direct materials Plastic $6 per b Foam Iring 54 per b Direct labor requirements Batting helmet 02 hr. at $20 per te. Molding Department Assembly Department 0.5 hr at $14 per he Molding Department Assembly Department 0.5. at $20 per he 1.8 hrs at $14 par hr. Estimated factory overhead costs for March indirect factory wages Depreciation of plant and equipment Estimated operating expenses for March Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Telephone expenseseling Telephone expense-administrative Travel expense-seling Office supplies expense Miscellaneous administrative expense Estimated other revenue and expense for Wan Football helmet 90 b 50 lbs. 50 b 65 b $80,000 12,000 164.300 87.200 32,400 3.800 $5,000 1.200 9,000 1.100 1,000 Batting helmet Football helmet Finished products Batting helmet Football helmet Power and light Insurance and property tax $4,000 2,300 Molding Department Assembly Department Estimated factory overhead costs for March: Indirect factory wages $4,000 Depreciation of plant and equipment 2.300 Estimated operating expenses for March Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Telephone expense-seling Telephone expense-administrative Travel expense-selling Office supplies expense Miscellaneous administrative expense Estimated other revenue and expense for Interest revenue Interest expense Estimated tax rate: 30% Instructions Prepare a sales budget for March Prepare a production budget for March Prepare a direct materials purchases budget for March Prepare a direct labor cost budget for March. Answer Prepare a factory overhead cost budget for March. 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 $14,000. Prepare a selling and administrative expenses budget for March Prepare a budgeted income statement for March 0.5 hr at $20 per hr. 1.8 hrs at $14 per hr. $86,000 12,000 154,300 87.200 32,400 3.800 $5,800 1,200 9,000 1,100 1,000 $940 872 Power and light Insurance and property tax 1. Evaluate this event that occurred at the beginning of March: The assembler (in the assembly department) wages are adjusted to meet new California minimum wage of $15/hour. There is a high turnover and everyone in the assembly department are new, therefore the actual takes 10% longer time to complete than budgeted. The budgeted molding department is fairly accurate so you do not need to change.