Budgeted Income Statement and Supporting Budgets - The budget director of Birds of a Feather 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 a. Estimated sales for January: Birdhouse 6,000 units at $55 per unit Bird feeder 4,500 units at $75 per unit b. Estimated inventories at January 1: Direct materials: Wood 220 ft. Plastic 250 lb Finished products: Birdhouse 300 units at $23 per unit Bird feeder 240 units at $34 per unit c. Desired inventories at January 31: Direct materials: Wood 180 ft. Plastic 210 lb. Finished products: Birdhouse 340 units at $23 per unit Bird feeder 200 units at $34 per unit d. Direct materials used in production: In manufacture of Bird House: Wood 0.80 ft. per unit of product Plastic 0.50 ib. per unit of product In manufacture of Bird Feeder: Wood 1.20 ft. per unit of product Plastic 0.75 lb. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $8.00 per ft. Plastic $1.20 per lb. f. Direct labor requirements: Birdhouse: 0.20 hr. at $15 per hr. Fabrication Department Assembly Department 0.30 hr. at $12 per hr. Bird Feeder: 0.40 hr. at $15 per hr. Fabrication Department Assembly Department 0.35 hr. at $12 per hr. g. Estimated factory overhead costs for January: Indirect factory wages Depreciation of plant and equipment $80,000 25,000 Power and light 8,000 2,000 $90,000 20,000 18,000 800 Insurance and property tax h. Estimated operating expenses for January: Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense-selling Office supplies expense Miscellaneous administrative expense i. Estimated other income and expense for January: Interest revenue 500 200 5,000 250 450 $300 224 Interest expense j. Estimated tax rate: 30% Required: 3. Prepare a direct materials purchases budget for January. 1. Prepare a sales budget for January, Birds of a Feather Inc. Direct Materials Purchases Budget For the Month Ending January 31 Wood Plastic Total Birds of a Feather Inc. Sales Budget For the Month Ending January 31 Unit Sales Unit Selling Volume Price Total Sales Required units for production: Birdhouse Bird feeder Plus desired units of inventory, January 31 Total Less estimated units of inventory, January 1 Birdhouse Bird feeder Total revenue from sales Total units to be purchased Unit price 2. Prepare a production budget for January. Total direct materials to be purchased 4. Prepare a direct labor cost budget for January Birds of a Feather Inc. Production Budget For the Month Ending January 31 Units Birds of a Feather Inc. Direct Labor Cost Budget For the Month Ending January 31 Birdhouse Bird Feeder Fabrication Department Assembly Department Total Hours required for production: Birdhouse Expected units to be sold Plus desired inventory, January 31 Total Less estimated inventory, January 1 Bird feeder Total Total units to be produced Hourly rate Total direct labor cost 5. Prepare a factory overhead cost budget for January. Birds of a Feather Inc. Factory Overhead Cost Budget For the Month Ending January 31 Indirect factory wages $ Depreciation of plant and equipment Power and light Insurance and property tax Total 6. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $29,000, and work in process at the end of January is estimated to be $35,400. Birds of a Feather Inc. Cost of Goods Sold Budget For the Month Ending January 31 Direct materials: - 5 Cost of direct materials available for use $ Cost of direct materials placed in production 5 Total manufacturing costs Total work in process during the period Cost of goods manufactured Cost of finished goods available for sale Cost of goods sold 7. Prepare a selling and administrative expenses budget for January. 8. Prepare a budgeted income statement for January Birds of a Feather Inc. Budgeted Income Statement For the Month Ending January 31 Selling and administrative expenses: Birds of a Feather Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 Selling expenses: Sales salaries expense Advertising expense Telephone expense-selling Travel expense-selling Total selling expenses Administrative expenses: Office salaries expense Depreciation expense-office equipment Telephone expense- administrative Office supplies expense Miscellaneous administrative expense Total administrative expenses Total operating expenses Total selling and administrative expenses Other revenue: Other expenses