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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

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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! a. 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 lb. Finished products: Birdhouse 500 units at $28 per unit Bird Feeder 210 units at $40 per unit c. Desired Inventories at January 31: Direct materials: Wood 220 ft. Plastic 340 lb. Finished products: Birdhouse 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. Plastic $1.40 per Ib. f. Direct labor requirements: Birdhouse: Fabrication Department 0.25 hr. at $20 per hr Assembly Department 0.30 hr. at $15 per hr Bird Feeder: Fabrication Department 0.40 hr. at $20 per hr Assembly Department 0.35 hr. at $15 per hr 0. Estimated factory overhead costs for January: Indirect factory wages $92,000 Depreciation of plant and equipment 34,000 Power and light 10,100 10,100 2,800 Power and light Insurance and property tax h. Estimated operating expenses for January: Sales salaries expense Advertising expense $85,100 17,600 Office salaries expense 19,200 1,100 1,000 400 3,800 Depreciation expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense-selling Office supplies expense Miscellaneous administrative expense 1. Estimated other income and expense for January: Interest revenue Interest expense 3. Estimated tax rate: 25% 350 250

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