The budget director of Safety Athletic Inc., with the assistance of the controller, treasurer,…


Question Description:

29.99

The budget director of Safety Athletic Inc., with the assistance of the controller, treasurer,… 1 answer below » The budget director of Safety Athletic 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 January 2008: a. Estimated sales for January: Batting helmet 3,500 units at $65 per unit Football helmet 6,800 units at $130 per unit b. Estimated inventories at January 1: View complete question » Direct materials: Finished products: Plastic 900 lbs. Batting helmet 270 units at $32 per unit Foam lining 490 The budget director of Safety Athletic 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 January 2008: a. Estimated sales for January: Batting helmet 3,500 units at $65 per unit Football helmet 6,800 units at $130 per unit b. Estimated inventories at January 1: Direct materials: Finished products: Plastic 900 lbs. Batting helmet 270 units at $32 per unit Foam lining 490 lbs. Football helmet 400 units at $52 per unit c. Desired inventories at January 31: Direct materials: Finished products: Plastic 1,240 lbs. Batting helmet 240 units at $34 per unit Foam lining 470 lbs. Football helmet 360 units at $55 per unit d. Direct materials used in production: In manufacture of batting helmet: Plastic 1.20 lbs. per unit of product Foam lining 0.50 lb. per unit of product In manufacture of football helmet: Plastic 2.80 lbs. per unit of product Foam lining 1.40 lbs. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic $7.00 per lb. Foam lining $4.00 per lb. f. Direct labor requirements: Batting helmet: Molding Department 0.20 hour at $14 per hour Assembly Department 0.50 hour at $12 per hour Football helmet: Molding Department 0.30 hour at $14 per hour Assembly Department 0.65 hour at $12 per hour g. Estimated factory overhead costs for January: Indirect factory wages $105,000 Power and light $16,000 Depreciation of plant and equipment 30,000 Insurance and property tax 8,700 h. Estimated operating expenses for January: Sales salaries expense $265,800 Advertising expense 135,600 Office salaries expense 84,300 Depreciation expense—office equipment 5,200 Telephone expense—selling 3,500 Telephone expense—administrative 700 Travel expense—selling 43,100 Office supplies expense 4,900 Miscellaneous administrative expense 5,200 i. Estimated other income and expense for January: Interest revenue $14,500 Interest expense 18,700 j. Estimated tax rate: 30% Instructions 1. Prepare a sales budget for January. 2. Prepare a production budget for January. 3. Prepare a direct materials purchases budget for January. 4. Prepare a direct labor cost budget for January. 5. Prepare a factory overhead cost budget for January. 6. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $12,500, and work in process at the end of January is desired to be $13,500. 7. Prepare a selling and administrative expenses budget for January. 8. Prepare a budgeted income statement for January. View less » Jul 24 2014 07:49 AM

Answer

29.99