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 $600ft.$

Plastic $1,000lbs.$

Finished products:

Bird house $1,000$ units at $$15$ per unit

Bird feeder $2,500$ units at $$8$ per unit

c$.$ Desired inventories at January $31$ :

Direct materials:

Wood $500ft.$

Plastic $1,250$ lbs$.$

Finished products:

Bird house $1,500$ units at $$15$ per unit

Bird feeder $3,000$ units at $$8$ per unit

d$.$ Direct materials used in production

In manufacture of bird house:

Wood $0\mathrm{.}80$ ft$.$ Per unit pf product

Plastic $0\mathrm{.}10$ lb per unit of product

In manufacture of bird feeder:

Wood $0\mathrm{.}20$ ft per unit of product

Plastic $1\mathrm{.}00$ lb per unit of product

E$.$ Anticipated cost of purchases and beginning and ending inventory of direct materials:

Wood $2\mathrm{.}50$ per ft Plastic $0\mathrm{.}80$ per lb

F$.$ Direct labor requirements

Bird house:

Fabrication Department $0\mathrm{.}40$ hr$.$ at $$18$ per hr$.$

Assembly Department $0\mathrm{.}20$ at $$12$ per hr$.$

Bird feeder:

Fabrication Department $0\mathrm{.}25$ hr$.$ at $$18$ per hr$.$

Assembly Department $0\mathrm{.}10$ hr$.$ at $$12$ per hr$.$

G$.$ Estimated factory overhead cost for January:

Indirect factory wages $$40,000$

Depreciation $20,000$

Power and light $10,000$

Insurance and property tax $5,000$

H$.$ Estimated operating expenses for january:

Sales salaries expense $125,000$

Advertising expense $80,000$

Office salaries expense $40,000$

Depreciation expense$-$office equipment $4,000$

Travel expense$-$selling $25,000$

Office supplies expense $2,500$

Miscellaneous administrative expense $3,500$

I. Estimated other revenue and expense for january:

Interest revenue $4,540$

Interest expense $3,000$

J$.$ Estimated tax rate: $25\%$

Required:

$1.$ Prepare a sales budget for january

$2.$ Prepare a production budget for january. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

$3.$ Prepare a direct materials purchases budget for january. For those boxes in which you must enter subrtracted or negative numbers use a minus sign

$4.$ Prepare a direct labor cost budget for january

$5.$ Prepare a factory overhead cost budget for january

$6.$ Prepare a cost of goods sold budget for january. Work in process at the beginning of january is estimated to be $$9,000,$ and work in process at the end of january is estimated to be $$10500.$ For those boxes in which you must enter subtracted or negative numbers use a minus sign.

$7.$ Prepare a selling and administrative expenses budget for january.

$8.$ Prepare a budgeted income statement for january. In the other revenue and expense section, indicate expenses as negative amounts.