Budgeted Income Statement and Supporting Budgets The budget director of Birds and Beyond 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: 0. Estimated sales for January Birdhouse 7,500 units at $66 per unit Bird feeder 5,000 units at $82 per unit b. Estimated Inventories at January 1: Direct materials: Wood 198 ft. Plastic 420 Finished products Birdhouse 500 units at $2 per unit Bird feeder 210 units at $10 per unit Desired Inventories at January 31: Direct materials: Wood 220 ft plastic 340 lb Finished products: urdhouse 400 units at $28 per unit Bird feeder 250 units at $40 per unit d. Direct materials used in production d. Direct materials used in production: In manufacture of BirdHouse: Wood 0.80 ft. per unit of product Plastic 0.50 lb. 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 $9.00 per ft. $1.40 per lb. Plastic f. Direct labor requirements: Birdhouse: Fabrication Department 0.25 hr, at $20 per hr. 0.30 hr, at $15 per hr. Assembly Department Bird Feeder: Fabrication Department 0.40 hr. at $20 per hr. Assembly Department 0.35 hr. at $15 per hr. g. Estimated factory overhead costs for January: Indirect factory wages Depreciation of plant and equipment Power and light $92,000 34,000 10,100 Assembly Department 0.35 hr. at $15 per hr. g. Estimated factory overhead costs for January: Indirect factory wages Depreciation of plant and equipment $92,000 34,000 10,100 Power and light 2,800 Insurance and property tax h. Estimated operating expenses for January: Sales salaries expense $85,100 17,600 Advertising expense Office salaries expense 19,200 1,100 1,000 Depreciation expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense-selling 400 3,800 350 Office supplies expense 250 Miscellaneous administrative expense 1. Estimated other income and expense for January: $450 Interest revenue 294 Interest expense j. Estimated tax rate: 25% 6. Prepare a cost of goods sold budget for lancary Work in process at the beginning of January is ottimated to be $33,600, and work in process at the end of January is estimated to be $41,200 Bed and Beyond Inc Cost of Goods sold adget For the Month Ending January 31 Finished goods inventory, January 17 Work in process inventory, January 17 Direct materials Direct materials inventory may 1 Direct materials purchases Cost of duct materials available for use Less Direct materials inventory, January 11 Cost of direct material placed in production Direct labor Factory overhead Total manufacturing costs Total work in process during the period Less: Work in process inventory, antary 31 Less: Work in process inventory, January 31 Cost of goods manufactured Cost of finished goods available for sale Less: Finished goods inventory, January 31 Cost of goods sold 7. Prepare a selling and administrative expenses budget for January Birds and Beyond 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 Administrative expenses: Office salaries expense Depreciation expense-office equipment Telephone expense-administrative IIIII Office supplies expense Miscellaneous administrative expense Total administrative expenses Total operating expenses 8. Prepare a budgeted income statement for January Birds and Beyond Inc. Budgeted Income Statement For the Month Ending January 31 Revenue from sales Cost of goods sold Gross profit Operating expenses: Selling expenses Administrative anoncos For the Month Ending January 31 Revenue from sales Cost of goods sold Gross profit Operating expenses: Selling expenses Administrative expenses Total operating expenses Income from operations III 1 llll IIII Other revenue: Interest revenue Other expenses: Interest expense Income before income tax Income tax (25% rate) Net income