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Budgeted Income Statement and supporting Badgets The budget director of Burding Homes & Feeders inc. with the assistance of the controller, treasurer, production manager and

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Budgeted Income Statement and supporting Badgets The budget director of Burding Homes & Feeders inc. with the assistance of the controller, treasurer, production manager and sales manager, thered the following data for use in developing the budgeted income statement for any a. Estimated sales for January Berd house 15.000 units at $25 per unit Bird Feeder 40,000 units at $15 per unit b. Estimated Inventories at January 11 Direct materials: Wood 600 Ft Plastic 1.000 lbs Finished products 1.000 units at Bird house 515 per unit 2.500 units at 58 Burd feeder per unit c. Desired inventones at January 31: Direct materials wood 500 Ft Plastic 1.250 lbs. Fished products 1.500 units at Bird house 515 per unit 3.000 units at $8 Sed feeder per unit d. Direct materials used in production in manufacture of Bird House: Wood 0.50 it. per unit of product 0.10 lb, per unit of product Plastic In manufacture of Bird Feeder Wood 0.20 ft. per unit of product 1.00 ib. per unit Plastic of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $2.50 per it Plastic $0.80 perib 1. Direct labor requirements: Bird House: 0.40 h at $18 Fabrication Department per hr 0.20 h at $12 Assembly Department Bird Feeder: 0.25 hr at $18 Fabrication Department per he 0.10 h at $12 Assembly Department perhe per hr $40.000 9. Estimated factory overhead costs for January Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax 20,000 10.000 5.000 $125,000 80,000 40,000 4,000 h. Estimated operating expenses for January Sales salaries expense Advertising expense office salaries expense Depreciation expense office equipment Travel expense-selling office supplies expense Miscellaneous administrative expense 1. Estimated other revenue and expense for January Interest revenue Interest expense J. Estimated tax rate: 25% 25,000 2.500 3,500 $4,540 3,000 Required: 1. Prepare a sales budget for January Birding Homes & Feeders Inc. Sales Budget For the Month Ending January 31 Unit Sales Unit Selling Volume Price Total Sales Bird house 15,000 $$ 25 SS 375,000 Bird feeder 40,000 15 600,000 Total revenue from sales S$ 975,000 2. Prepare a production budget for January, For those boxes in which you must enter subtracted or negative numbers use a minus sign. Birding Homes & Feeders Inc. Production Budget For the Month Ending January 31 Units Bird House Bird Feeder Expected units to be sold 15,000 40,000 1,500 3,000 16,500 43,000 Desired inventory, January 31 Total units available Estimated Inventory, January 1 Total units to be produced 600 X 3. Prepare a direct materials purchases budget for January. For those boxes in which you must enter subtracted or negative numbers use a minus sign Birding Homes & Feeders Inc. Direct Materials Purchases Budget For the Month Ending January 31 Wood Plastic Total Required units for production: Bird house Bird feeder Desired units of inventory, January 31 Total units available Estimated units of inventory, January 1 Total units to be purchased Unit price XS Total direct materials to be purchased 4. Prepare a direct labor cost budget for January Birding Homes & Feeders Inc. Direct Labor Cost Budget For the Month Ending January 31 Fabrication Department Assembly Department Total Hours required for production: Bird house Bird feeder Total Hourly rate 5 XS XS Total direct labor cost S $ $ 5 s 5. Prepare a factory overhead cost budget for January Birding Homes & Feeders Inc. Factory Overhead Cost Budget For the Month Ending January 31 Indirect factory wages Depreciation of plant and equipment Power and light 40,000 20,000 10,000 Insurance and property tax 5,000 75,000 Total factory overhead cost $900 and work in process at the end on o. Prepare a cost of goods sold budpet for any work in process at the grany is estimated to be $9,000, and work in process at the end of January stituted to be $10.500. For those boxes in which you must enter subtracted or negative nume minus sign Birding Homes Feeders Inc Cost of Goods Sold Budget For the Month Ending January 31 Finished goods Inventory, January 1 Work in process inventory, January 1 Direct materials Direct materials inventory, January 1 35 Direct materials purchases Cost of direct materials available for use Direct materials inventory, January 21 Cast of direct materials placed in production Direct labor Factory overhead Total manufacturing costs Total work in process during period Work in process inventory, January 31 Cost of goods manufactured Cost of fished goods available for sale Finished goods inventory, January 31 Cost of goods sold 7. Prepare a selling and administrative expenses budget for January Birding Homes & Feeders Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 Selling expenses: Sales salaries expense Advertising expense Travel expense-selling Total selling expenses Administrative expenses: office salaries expense Depreciation expense office equipment Office supplies expense Miscellaneous administrative expense v Total administrative expenses Total operating expenses 8. Prepare a budgeted Income statement for January. In the other revenue and experise section, indicate expenses as negative amounts, Bieding Home Feeders Inc Budgeted Income Statement For the Month Ending January 31 Revenue from sales 55 Cost of goods sold Gross profit Operating expenses: Selling expenses Administrative expenses Total operating expenses $$ Operating income Other revenue and expense: Interest revenue Interest expense SS Income before income tax Income tax expense $$ Net income

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