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 $15 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. Finished products! Bird house Bird feeder d. Direct materials used in production: In manufacture of Bird House: Wood 1,500 units at $15 per unit 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 Plastic 0.20 ft. per unit of product 1.00 lb. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood Plastic f. Direct labor requirements: Bird House: $2.50 per ft. $0.80 per lb. Fabrication Department 0.40 hr. at $18 per hr. Fabrication Department Assembly Department Bird Feeder: 0.40 hr. at $18 per hr. 0.20 hr. at $12 per hr. Fabrication Department Assembly Department g. Estimated factory overhead costs for January: 0.25 hr. at $18 per hr. 0.10 hr. at $12 per hr. Indirect factory wages $40,000 Depreciation of plant and equipment 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 Miscellaneous administrative expense i. Estimated other revenue and expense for January: Interest revenue Interest expense j. Estimated tax rate: 25% 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 3,500 $4,540 3,000 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. Birding Homes & Feeders Inc. BOOK 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 311 Birding Homes & Feeders Inc. Direct Materials Purchases Budget For the Month Ending January 31 Wood Plastic Total eBook 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 Hours required for production: Bird house Bird feeder Total Hourly rate $