Budgeted Income Statement and Supporting Budgets
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:
a. Estimated sales for May:
Bicycle helmet | 8,500 units at $24 per unit |
Motorcycle helmet | 5,500 units at $180 per unit |
b. Estimated inventories at May 1:
Direct materials: | Finished products: | ||||||
Plastic | 1,480 | lbs. | Bicycle helmet | 200 units at $15 per unit | |||
Foam lining | 520 | lbs. | Motorcycle helmet | 100 units at $90 per unit |
c. Desired inventories at May 31:
Direct materials: | Finished products: | ||||||
Plastic | 2,000 | lbs. | Bicycle helmet | 400 units at $15 per unit | |||
Foam lining | 800 | lbs. | Motorcycle helmet | 300 units at $100 per unit |
d. Direct materials used in production:
In manufacture of bicycle helmet: | ||
Plastic | 0.90 lb. per unit of product | |
Foam lining | 0.20 lb. per unit of product | |
In manufacture of motorcycle helmet: | ||
Plastic | 3.50 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 | $4.40 per lb. | |
Foam lining | $0.90 per lb. |
f. Direct labor requirements:
Bicycle helmet: | ||
Molding Department | 0.30 hr. at $15 per hr. | |
Assembly Department | 0.10 hr. at $14 per hr. | |
Motorcycle helmet: | ||
Molding Department | 0.50 hr. at $15 per hr. | |
Assembly Department | 0.40 hr. at $14 per hr. |
g. Estimated factory overhead costs for May:
Indirect factory wages | $125,000 | Power and light | $23,000 | ||||
Depreciation of plant and equipment | 45,000 | Insurance and property tax | 11,000 |
h. Estimated operating expenses for May:
Sales salaries expense | $175,000 | |
Advertising expense | 120,000 | |
Office salaries expense | 92,000 | |
Depreciation expense—office equipment | 6,000 | |
Miscellaneous expense—selling | 5,000 | |
Utilities expense—administrative | 3,000 | |
Travel expense—selling | 50,000 | |
Office supplies expense | 2,500 | |
Miscellaneous administrative expense | 1,500 |
i. Estimated other income and expense for May:
Interest revenue | $14,560 | |
Interest expense | 3,000 |
j. Estimated tax rate: 25%
Required:
1. Prepare a sales budget for May.
Jupiter Helmets Inc. | |||
Sales Budget | |||
For the Month Ending May 31 | |||
Unit Sales Volume | Unit Selling Price | Total Sales | |
Bicycle helmet | $ | $ | |
Motorcycle helmet | |||
Total revenue from sales | $ |
2. Prepare a production budget for May.
Jupiter Helmets Inc. | ||
Production Budget | ||
For the Month Ending May 31 | ||
Bicycle Helmet Units | Motorcycle Helmet Units | |
Expected units to be sold | ||
Total | ||
Total units to be produced |
3. Prepare a direct materials purchases budget for May.
Jupiter Helmets Inc. | |||
Direct Materials Purchases Budget | |||
For the Month Ending May 31 | |||
Plastic | Foam Lining | Total | |
Units required for production: | |||
Bicycle helmet | |||
Motorcycle helmet | |||
Total | |||
Total units to be purchased | |||
Unit price | $ | $ | |
Total direct materials to be purchased | $ | $ | $ |
Answers
Jupiter Helmets Inc. |
|||
Sales Budget |
|||
For the Month Ending May 31 |
|||
Unit Sales Volume |
Unit Selling Price |
Total Sales |
|
Bicycle helmet |
8500 |
$24 |
$204,000 |
Motorcycle helmet |
5500 |
$180 |
$990,000 |
Total revenue from sales |
$1,194,000 |
Jupiter Helmets Inc. |
||
Production Budget |
||
For the Month Ending May 31 |
||
Bicycle Helmet Units |
Motorcycle Helmet Units |
|
Expected units to be sold |
8500 |
5500 |
Add: Desired ending inventory |
400 |
300 |
Total |
8900 |
5800 |
Less: Beginning inventory finished product |
200 |
100 |
Total units to be produced |
8700 |
5700 |
Jupiter Helmets Inc. |
|||
Direct Materials Purchases Budget |
|||
For the Month Ending May 31 |
|||
Plastic |
Foam Lining |
Total |
|
Units required for production: |
|||
Bicycle helmet |
7830 |
1740 |
9570 |
Motorcycle helmet |
19950 |
7980 |
27930 |
Add: Desired ending inventory - material |
2000 |
800 |
|
Total |
29780 |
10520 |
|
Less: Beginning inventory May 1: material |
1480 |
520 |
|
Total units to be purchased |
28300 |
10000 |
|
Unit price |
$4.40 |
$0.90 |
|
Total direct materials to be purchased |
$124,520 |
$9,000 |
$133,520 |
Budgeted Income Statement and Supporting Budgets The budget director of Jupiter Helmets Inc., with the assistance...
Budgeted Income Statement and Supporting Budgets 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: a. Estimated sales for May: Bicycle helmet 9,250 units at $24 per unit Motorcycle helmet 6,250 units at $180 per unit b. Estimated inventories at May 1: Direct materials: Finished products: Plastic 1,480 lbs. Bicycle helmet 200 units at $15...
Budgeted Income Statement and Supporting Budgets 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 a. Estimated sales for May: Bicycle helmet 7,500 units at $24 per unit Motorcycle helmet 7,000 units at $185 per unit b. Estimated Inventories at May 1: Direct materials: Plastic Foam lining 1,480 lbs. 520 lbs. Finished products: Bicycle helmet...
Here is what I have so Far - Please help me with 4-8 Thank You! Budgeted Income Statement and Supporting Budgets 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: a. Estimated sales for May: Bicycle helmet 8,500 units at $24 per unit Motorcycle helmet 5,500 units at $180 per unit b. Estimated inventories at...
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: Estimated sales for March: Batting helmet 1,200 units at $40 per unit Football helmet 6,500 units at $160 per unit Estimated inventories at March 1: Direct materials: Plastic 90 lbs. Foam lining 80 lbs. Finished products: Batting helmet 40...
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: Estimated sales for March: Batting helmet 1,200 units at $40 per unit Football helmet 6,500 units at $160 per unit Estimated inventories at March 1: Direct materials: Plastic 90 lb. Foam lining 80 lb. Finished products: Batting helmet 40...
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 2016: Estimated sales for March: Batting helmet 1,200 units at $40 per unit Football helmet 6,500 units at $160 per unit Estimated inventories at March 1: Direct materials: Plastic 90 lbs. Foam lining 80 lbs. Finished products: Batting helmet...
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: Estimated sales for March: Batting helmet 1,200 units at $40 per unit Football helmet 6,500 units at $160 per unit Estimated inventories at March 1: Direct materials: Plastic 90 lb. Foam lining 80 lb. Finished products: Batting helmet 40...
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: Batting helmet 1,200 units at $40 per unit Football helmet 6,500 units at $160 per unit b. Estimated inventories at March 1: Direct materials Plastic 90 lb Foam lining 80 lb Finished pducts Batting...
PR 21-3B Budgeted income statement and supporting budgets Obj. 4 4. Total direct labor cost in Assembly Dept. 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: $171,766 Batting helmet.... 1,200 units at $40 per unit 6,500 units at $160 per unit EXCEL TEMPLATE Football helmet B. Estimated inventories...
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: Estimated sales for March: Batting helmet 1,200 units at $40 per unit Football helmet 6,500 units at $160 per unit Estimated inventories at March 1: Direct materials: Finished products: Plastic 90 lbs. Batting helmet 40 units at $25 per unit Foam lining 80 lbs. Football...