Budgeted Income Statement and Supporting Budgets The budget director of Birding Homes & Feeders 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: Bird house 15,000 units at $25 per unit Bird feeder 40,000 units at $15 per unit b. Estimated inventories at January 1: Direct materials: Wood 600 Plastic 1,000 lbs Finished products: 1,000 units at Bird house $15 per unit Bird feeder 2,500 units at 58 c. Desired inventories at January 31: Direct materials: Wood Plastic Finished products: 1,500 units at Bird house $15 per unit Bird feeder 3,000 units at $8 per unit d. Direct materials used in production: In manufacture of Bird House: Wood 0.80 ft. per unit per unit SOOL 1,250 lbs. of product 0.10 lb, per unit of product Plastic 0.40 hr at $18 per hr perhe perhe In manufacture of Bird Feeder: Wood 0.20 t. 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 ft. Plastic $0.80 per Ib. f. Direct labor requirements: Bird House: Fabrication Department 0.20 hr. at 12 Assembly Department Bird Feeder: 0.25 hr at $18 Fabrication Department 0.10 hr at $12 Assembly Department g. Estimated factory overhead costs for January: Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax h. Estimated operating expenses for January: Sales salaries expense Advertising expense Office salaries expense 40,000 Depreciation expense-office equipment Travel expense--selling Office supplies expense Miscellaneous administrative expense per hr $40,000 20,000 10,000 5,000 $125,000 30,000 4,000 25,000 2,500 3,500 i. Estimated other revenue and expense for January: Interest revenue 54,540 Interest expense j. Estimated tax rate: 25% 3,000 Required: 1. Prepare a sales budget for January Birding Homes & Feeders Inc. Sales Budget For the Month Ending January 31 Unit Sales Volume Unit Selling Price Total Sales Bird house Bird feeder Total revenue from sales 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 3. Prepare a direct materials purchases budget for January. 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 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 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 Hours required for production: Bird house Bird Feeder Total Hourly rate 55 Total direct labor cost 5. Prepare a factory overhead cost budget for January Birding Homes & Feeders Inc. Factory Overhead Cost Budget For the Month Ending January 31 Total factory overhead cost 6. Prepare a cost of goods sold budget for January, Work in process at the beginning of January is estimated to be $9,000, and work in process at the end of January is estimated to be $10,500. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Birding Homes & Feeders Inc. Cost of Goods Sold Budget For the Month Ending January 31 Direct materials: Cost of direct materials available for use 55 Cost of direct materials placed in productions Total manufacturing costs Total work in process during period 6. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $9,000, and work in process at the end of January is estimated to be $10,500. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Birding Homes & Feeders Inc. Cost of Goods Sold Budget For the Month Ending January 31 55 Direct materials: Cost of direct materials available for use Cost of direct materials placed in productions Total manufacturing costs Total work in process during period 5$ Cost of goods manufactured Cost of finished goods available for sale 55 Cost of goods sold $$ 7. Prepare a selling and administrative expenses budget for January Birding Homes & Feeders Inc. Selling and Administrative Expenses Budget For the Month Endina January 31 7. Prepare a selling and administrative expenses budget for January Birding Homes & Feeders Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 Selling expenses: 5$ 5$ Total selling expenses Administrative expenses: : $$ Total administrative expenses Total operating expenses $$ 8. Prepare a budgeted income statement for January. In the Other revenue and expense section, indicate expenses as negative amounts. Birding Homes & Feeders Inc. Budgeted Income Statement For the Month Ending January 31 58 5$ Operating expenses: Total operating expenses Operating income Other revenue and expense: Income before income tax 5$ Net Income 5$