PR 22-3B Budgeted income statement and supporting budgets 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: a. Estimated sales for March: OBJ. 4 1,200 units at $40 per unit Batting helmet................. . .. Football helmet . . . . . . . .. . . . . . . . . .. . .. . .. . . . .. . .. . . . ..6,500 units at $160 per unit (Continued) Budgeting b. Estimated inventories at March 1: Direct materials: Finished products: 40 units at $25 per unit Football helmet.240 units at $77 per unit 80 lb. c. Desired inventories at March 31: Direct materials: Finished products: s0 lb. 65 lb. Batting helmet..... 50 units at $25 per unit Football helmet....... 220 units at $78 per unit d. Direct materials used in production: In manufacture of batting helmet Foam lining............................................ 0.50 lb. per unit of product In manufacture of football helmet: Foam lining ..........................................1.50 lb. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: $6.00 per lb. f. Direct labor requirements Batting helmet . 0.20 hr. at $20 per hr Football helmet Assembly 1.80 hrs. at $14 per hr g. Estimated factory overhead costs for March: $86,000 12,000 Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax $4,000 2,300 h. Estimated operating expenses for March Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense-selling Office supplies expense Miscellaneous administrative expense $184,300 87,200 32,400 3,800 5,800 1,200 9,000 1,100 1,000 i. Estimated other income and expense for March $940 872 Interest revenue Interest expense j. Estimated tax rate: 30% Instructions 1. Prepare a sales budget for March 2. Prepare a production budget for March. 3. Prepare a direct materials purchases budget for March 4. Prepare a direct labor cost budget for March