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CengageNow Online teachin XC Excel Learning Systems Inc. W x c 0 sjc.cengagenowcomirn/takeAssignment/takeAssignmentMain.do?takeAssignmentSessionLocator-assignment-take eBook Problem-solving Strategy Budgeted Income Statement and Supporting Budgets 14. 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; a. Estimated sales for March: Batting helmet Football helmet ............................................. 1,200 units at $40 per unit 6,500 units at $160 per unit b. Estimated inventories at March 1: Direct materials: Plastic ............ Finished products: 90 lbs. Batting helmet ....... 80 lbs. Football helmet ....... 40 units at $25 per unit 240 units at $77 per unit Foam lining........ C. Desired inventories at March 31: Direct materials Plastic Foam lining. 50 lbs. 65 lbs. Finished products: Batting helmet......... 50 units at $25 per unit Football helmet........ 220 units at $78 per unit d. Direct materials used in production: 1.20 lbs. per unit of product 0.50 lb. per unit of product In manufacture of batting helmet Plastic Foam lining........................................... In manufacture of football helmet Plastic Foam lining. 3.50 lbs. per unit of product 150 lbs. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: $6.00 per lb. Plastic Foam lining. A. irect labor requirements : $4.00 per lb. Batting helmet: Molding Department.............................. 0.20 hr. at $20 per hr. 0 0 hr at $1AExplanation / Answer
Solution:
1) Sales Budget
Sales Budget
Unit Sales Volume
Unit Selling Price
Total Sales
Batting Helmet
1200
$40
$48,000
Football Helmet
6500
$160
$1,040,000
Total Revenue from Sales
$1,088,000
2) Production Budget
Production Budget
Units
Betting Helmet
Football Helmet
Expected Units to be sold
1200
6500
Plus: Desired Inventory March 31, 2014
50
220
Total
1250
6720
Less: estimated inventory March 1, 2014
40
240
Total Units to be produced
1210
6480
3) Direct Materials Purchases Budget
Direct Materials Purchases Budget
Plastic
Foam Lining
Total
Units required for production:
Batting Helmet
1452
605
Football Helmet
22680
9720
Plus: Desired units ot inventory March 31, 2014
50
65
Total
24182
10390
Less: Estimated Inventory March 1, 2014
90
80
Total units to be purchased
24092
10310
Unit Price
$6
$4
Total direct materials to be purchased
$144,552
$41,240
$185,792
4) Direct labor cost budget
Direct labor cost budget
Molding Department
Assembly Department
Total
Hours required for Production:
Batting Helmet
242
605
Football Helmet
3240
11664
Total
3482
12269
Hourly Rate
$20
$14
Total Direct labor cost
$69,640
$171,766
$241,406
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Pls ask separate question for remaining part.
Sales Budget
Unit Sales Volume
Unit Selling Price
Total Sales
Batting Helmet
1200
$40
$48,000
Football Helmet
6500
$160
$1,040,000
Total Revenue from Sales
$1,088,000
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