Reference no: EM133090743
Question - Budgeted income statement and supporting budgets for three months - Bellaire Inc. gathered the following data for use in developing the budgets for the first quarter (January, February, March) of its fiscal year:
a. Estimated sales at $125 per unit:
January 25,000 units
February 30,000 units
March 45,000 units
April 50,000 units
b. Estimated finished goods inventories:
January 1 2,000 units
January 31 10% of next month's sales
February 28 10% of next month's sales
March 31 10% of next month's sales
c. Work in process inventories are estimated to be insignificant (zero).
d. Estimated direct materials inventories:
January 1 1,000 lbs.
January 31 1,500 lbs.
February 28 2,000 lbs.
March 31 2,500 lbs.
e. Manufacturing costs:
Per Unit
Direct materials (0.8 lb. per unit × $15 per lb.) $ 12
Direct labor (2.5 hrs. per unit × $24 per hr.) 60
Variable factory overhead ($1.20 per direct labor hour) 3
Fixed factory overhead ($200,000 per month, allocated using 40,000 units) 5
Total per-unit manufacturing costs $80
f. Selling expenses:
Variable selling expenses $4 per unit
Fixed selling expenses $150,000
Administrative expenses (all fixed costs) $400,000
Required -
1. Prepare a sales budget for March.
2. Prepare a production budget for March.
3. Prepare a direct materials purchases budget for March.
4. Prepare a direct labor cost budget for March.
5. Prepare a factory overhead cost budget for March.
6. Prepare a cost of goods sold budget for March.
7. Prepare a selling and administrative expenses budget for March. Enter all amounts as positive number.
8. Prepare a budgeted income statement with budgeted operating income for March.