Hardin Fabrications is preparing its master budget for the third quarter.

Average sales price of merchandise $$220$

Average ingots of steel per unit $3\mathrm{.}5$

Cost of one steel ingot $ $17\mathrm{.}00$

Direct labor hours per unit $1\mathrm{.}5$

Direct labor rate per hour $ $19\mathrm{.}00$

Projected Sales in Units

January: $1,500$

February: $1,875$

March: $1,750$

April: $2,000$

May: $1,200$

June: $1,900$

July: $2,250$

August: $2,100$

September :$1,650$

October: $3,200$

November: $1,400$

December :$1,900$

Variable overhead per unit produced: $ $40\mathrm{.}00$

Fixed overhead per year $ $96,000$

Selling expense per unit sold $ $18\mathrm{.}00$

Fixed administrative expense per year $ $125,000$

Capacity for the year $25,000$

$\%$ of next month's sales in production ending inventory $30\%$

$\%$ of next month's production in materials ending inventory $25$

$\%$Units on hand July $1$: $675$

Steel ingots on hand July $1$: $2,083$

Required:

Create the Operating Bud get and Budgeted Income Statement for the third quarter.$($Image shows format for this, please show work! Thank you$)$