Question & Answer: tance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for…..

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	9,500 units at $24 per unit
Motorcycle helmet	6,750 units at $175 per unit

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:

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:

j. Estimated tax rate: 25%

Instructions:

1. Prepare a sales budget for May.

2. Prepare a production budget for May. Enter all amounts as positive numbers.

3. Prepare a direct materials purchases budget for May. Enter all amounts as positive numbers.

4. Prepare a direct labor cost budget for May. Enter all amounts as positive numbers.

5. Prepare a factory overhead cost budget for May. Enter all amounts as positive numbers.

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. Enter all amounts as positive numbers.

7. Prepare a selling and administrative expenses budget for May. Enter all amounts as positive numbers.

8. Prepare a budgeted income statement for May. Enter all amounts as positive numbers. If required, round your interim calculations to nearest whole value.

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