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%

Instruction
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.

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Bicycle helmet Motorcycle helmet 7,500 units at $24 per unit 5,000 units at $175 per unit Direct materials: Finished products: 1,480 lbs 520lbs. Plastic Bicycle helmet Motorcycle helmet 200 units at $15 per unit 100 units at $90 per unit Foam lining Direct materials: 2,000 lbs 800 lbs Finished products: Bicycle helmet Plastic 400 units at $15 per unit ycle helmet 300 units at $100 prunit Foam lining In manufacture of bicycle helmet: Plastic Foam lining 0.90 lb. per unit of product 0.20 lb. per unit of product In manufacture of motorcycle helmet: Plastic Foam lining 140 lbs. per unit of product 3.50 lbs. per unit of product Bicycle helmet: Molding Department Assembly Department 0.30 hr. at $15 per hr 0.10 hr. at $14 per hr. Motorcycle helmet: Molding Department Assembly Department 0.50 hr. at $15 per hr 0.40 hr. at $14 per hr. Indirect factory wages Depreciation of plant and equipment45,000 $125,000 Power and light nsurance and property tax $23,000 11,000 Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Miscellaneous expense-selling Utilities expense-administrative Travel expense-selling Office supplies expense Miscellaneous administrative expense $175,000 120,000 92,000 6,000 5,000 3,000 50,000 2,500 1,500