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 Bird feeder b. Estimated inventories at January 1: Direct materials: Wood Plastic Finished products: Bird house 15,000 units at $25 per unit 40,000 units at $15 per unit 600 ft. 1,000 lbs. 1,000 units at $1 per unit 2,500 units at $8 Bird feeder c. Desired Inventories at January 31: Direct materials: Wood Plastic Finished products: per unit 500 ft. 1,250 lbs. Bird house Bird feeder 1,500 units at $15 per unit 3,000 units at $8 per unit Previous Bird feeder d. Direct materials used in production: In manufacture of Bird House: Wood 3,000 units at $8 per unit Plastic In manufacture of Bird Feeder: Wood 0.80 ft. per unit of product 0.10 lb. per unit of product 0.20 ft. per unit Plastic of product 1.00 lb. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood Plastic $2.50 per ft. $0.80 per lb. f. Direct labor requirements: Bird House: Fabrication Department Assembly Department. 0.40 hr. at $18 per hr 0.20 hr. at $12 per hr Bird Feeder: Fabrication Department Assembly Department 9. Estimated factory overhead costs for January: 0.25 hr. at $18 per hr. 0.10 hr. at $12 per hr Fabrication Department Assembly Department g. Estimated factory overhead costs for January: per hr. 0.10 hr. at $12 per hr. Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax $40,000 20,000 10,000 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. Required: 1. Prepare a sales budget for January Bird house Bird feeder Birding Homes & Feeders Inc. Sales Budget For the Month Ending January 31 Total revenue from sales Unit Sales Volume Unit Selling Price Total Sales 2. Prepare a production budget for January. For those boxes in which you must enter subtracted or negative numbers use a minus sign Check My Work 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Required units for production: Bird house Bird feeder Desired units of inventory, January 31 Birding Homes & Feeders Inc. Direct Materials Purchases Budget For the Month Ending January 31 Wood Plastic Total Total units available Estimated units of inventory, January 11 Total units to be purchased Unit price Total direct materials to be purchased 4. Prepare a direct labor cost budget for January. Hours required for production: Birding Homes & Feeders Inc. Direct Labor Cost Budget For the Month Ending January 31 Fabrication. Department Assembly Department Total Previous 4. Prepare a direct labor cost budget for January. Birding Homes & Feeders Inc. Direct Labor Cost Budget For the Month Ending January 31 Hours required for production: Bird house Bird feeder Total Hourly rate S Total direct labor cost $ Fabrication Department 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 Assembly Department Total 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 $5 Cost of direct materials placed in production ss Total manufacturing costs Total work in process during period Cost of goods manufactured Cost of finished goods available for sale i Cost of goods sold check My Work Previous 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: 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 amount Birding Homes & Feeders Inc. 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 Operating expenses: Total operating expenses Operating income Other revenue and expense: Income before income tax Net income Prev