Budgeted Income Statement and Supporting Budgets The budget director of Birding Homes 8t 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: _ 15,000 units at Bird house $25 per unit . 40,000 units at Bird Feeder . $15 per unit b. Estimated inventories at January 1: Direct materials: Wood 600 ft. Plastic 1,000 lbs. Finished products: 1,000 units at Bird house . $15 per unit _ 2,500 units at $8 Bird feeder _ per unit c. Desired inventories at January 31: Direct materials: Wood 500 ft. Plastic 1,250 lbs. Finished products: 1.500 units at 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 Revenue from sales $ $ Cost of goods sold Gross profit $ $ Operating expenses: Selling expenses $ $ Administrative expenses V Total operating expenses Operating income $ $ Other revenue and expense: Interest revenue $ $ Interest expense Income before income tax $ $ Income tax expense Net income $ $Finished products: 1,500 units at Bird house $15 per unit 3,000 units at $8 Bird feeder per unit d. Direct materials used in production: In manufacture of Bird House: 0.80 ft. per unit Wood of product 0.10 lb. per unit Plastic of product In manufacture of Bird Feeder: 0.20 ft. per unit Wood of product 1.00 lb. 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 lb. f. Direct labor requirements: Bird House: 0.40 hr. at $18 Fabrication Department per hr. 0.20 hr. at $12Bird Feeder: Fabrication Department 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 Depreciation expenseoffice equipment Travel expenseselling Office supplies expense Miscellaneous administrative expense i. Estimated other revenue and expense for January: Interest revenue Interest expense j. Estimated tax. rate: 25% 0.25 hr. at $18 per hr. 0.10 hr. at $12 per hr. $40,000 20,000 10,000 5,000 $125,000 00,000 40,000 4,000 25,000 2,500 3,500 $4, 540 3,000 Sales Budget For the Month Ending January 31 Unit Sales Unit Selling Total Sales Volume Price Bird house 15,000 $$ 25 $$ 375,000 Bird feeder 40,000 15 600,000 Total revenue from $5 975,000 sales 2. Prepare a production budget for January. For those boxes in which you must enter subtracted or negative nun Birding Homes & Feeders Inc. Production Budget For the Month Ending January 31 Units Bird House Bird Feeder Expected units to be sold 15,000 V 40,000 Desired inventory, January 31 1,500 V 3,000 Total units available 16,500 43,000 Estimated inventory, January 1 V 600 X 1,000 X Total units to be produced V 15,500 40,500Direct Materials Purchases Budget For the Month Ending January 31 Wood Plastic Total Required units for production: Bird house 12,400 1,550 Bird feeder 8,100 40,500 Desired units of inventory, January 31 500 1,250 Total units available 21,000 43,300 Estimated units of inventory, January 1 -600 -1,000 Total units to be purchased 20,400 42,300 Unit price $ x$ 2.50 0.80 Total direct materials to be purchased $ 51,000 V S $ 33,840 V S $ 84,840 VDirect Labor Cost Budget For the Month Ending January 31 Fabrication Assembly Department Total Department Hours required for production: Bird house 6,200 3,100 Bird feeder 10,125 4,050 Total 16,325 7,150 Hourly rate $ x$ 18 x$ 12 Total direct labor cost S $ 293,850 V $ 85,800 V $ 379,650 V 5. Prepare a factory overhead cost budget for January. Birding Homes & Feeders Inc. Factory Overhead Cost Budget For the Month Ending January 31 Indirect factory wages Depreciation of plant and equipment Power and light V Insurance and property tax Total factory overhead cost6. 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 Finished goods inventory, January 1 $ $ Work in process inventory, January 1 Direct materials: Direct materials inventory, January 1 V $ $ Direct materials purchases V Cost of direct materials available for use $ $ Direct materials inventory, January 31 Cost of direct materials placed in production $ $ Direct labor Factory overhead Total manufacturing costs Total work in process during period Work in process inventory, January 31 V Cost of goods manufactured Cost of finished goods available for sale $ $Work in process inventory, January 31 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, January 31 V 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 Ending January 31 Selling expenses: Sales salaries expense $ $ Advertising expense Travel expense-selling Total selling expenses Administrative expenses: Office salaries expense $ $ Depreciation expense-office equipment V Office supplies expense7. 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: Sales salaries expense $ $ Advertising expense Travel expense-selling Total selling expenses Administrative expenses: Office salaries expense $ $ Depreciation expense-office equipment V Office supplies expense Miscellaneous administrative expense Total administrative expenses Total operating expenses $ $ 8. Prepare a budgeted income statement for January. In the Other revenue and expense section, indicate expenses as