Question - 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 2014:
Estimated sales for March:
Estimated inventories at March 1:
Desired inventories at March 31:
Direct materials used in production:
Anticipated cost of purchases and beginning and ending inventory of direct materials:
Direct labor requirements:
Estimated factory overhead costs for March:
Estimated operating expenses for March:
Estimated other income and expense for March:
Estimated tax rate: 30%
Required:
1. Prepare a sales budget for March. Enter all amounts as positive numbers.
2. Prepare a production budget for March. Enter all amounts as positive numbers.
3. Prepare a direct materials purchases budget for March. Enter all amounts as positive numbers.
4. Prepare a direct labor cost budget for March. Enter all amounts as positive numbers.
5. Prepare a factory overhead cost budget for March. Enter all amounts as positive numbers.
6. 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 $14,800. Enter all amounts as positive numbers.
7. Prepare a selling and administrative expenses budget for March. Enter all amounts as positive numbers.
8. Prepare a budgeted income statement for March. Enter all amounts as positive numbers.