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 2013:

a. Estimated sales for May:

b. Estimated inventories at May 1:

c. Desired inventories at May 31:

d. Direct materials used in production:

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:

g. Estimated factory overhead costs for May:

h. Estimated operating expenses for May:

i. Estimated other income and expense for May:
Interest revenue . $14,560
Interest expense . 3,000
j. Estimated tax rate: 25%

1. Prepare a sales budget for May.
2. Prepare a production budget for May.
3. Prepare a direct materials purchases budget for May.
4. Prepare a direct labor cost budget for May.
5. Prepare a factory overhead cost budget for May.
6. Prepare a cost of goods sold budget for May. Work in process at the beginning of May is estimated to be $4,200, and work in process at the end of May is desired to be $3,800.
7. Prepare a selling and administrative expenses budget for May.
8. Prepare a budgeted income statement forMay.

  • CreatedFebruary 04, 2014
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