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 gatheredt 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: Bird house 1,000 units at $15 per unit 2,500 units at $8 per unit Bird Feeder c. Desired Inventories at January 3 Direct materials: Wood Plastic Finished products: SOO ft 1.250 lbs. Bird house 1,500 units at $15 per unit 3,000 units at $8 per unit Bird Feeder d. Direct materials used in production: In manufacture of Bird House: 0.80 ft. per unit In manufacture of Bird House: Wood 0.80 ft. per unit of product 0.10 lb. per unit of product Plastic 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. Assembly Department 0.20 hr. at $12 per hr. Bird Feeder: Fabrication Department 0.25 hr. at $18 per hr. Assembly Department 0.10 hr. at $12 per hr. g. Estimated factory overhead costs for January: Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax $40,000 20,000 10,000 5,000 HCCCC-a propery h. Estimated operating expenses for January: Sales salaries expense Advertising expense Office salaries expense $125,000 80,000 40,000 Depreciation expense-office equipment 4,000 Travel expense-selling Office supplies expense 25,000 2,500 3,500 Miscellaneous administrative expense i. Estimated other revenue and expense for January: Interest revenue $4,540 3,000 Interest expense j. Estimated tax rate: 25% Required: 1. Prepare a sales budget for January. Birding Homes & Feeders Inc. Sales Budget For the Month Ending January 31 Unit Sales Volume Unit Selling Price Total Sales Bird house Bird feeder Total revenue from sales 2. Prepare a production budget for January. For those boxes in which you must enter subtracted or negative numbers use a m BOOK 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. 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 min Birding Homes & Feeders Inc. Direct Materials Purchases Budget for the Month Ending January Wood plastic Total Required units for production Bird house Bird Feeder Desired units of inventory, January 31 Total units available Estimated units of inventory, January 1 Total units to be purchased eBook Calculator 2. Prepare a production budget for January. For those boxes in which you must enter subtracted Birding Homes & Feeders Inc. Production Budget For the Month Ending January 31 Units Bird House Bird Feeder Desired Inventory, January 31 Estimated Inventory, January 1 Expected units to be sold Total units available Total units to be produced purchases budget for January. For those boxes in which you must ente Birding Homes & Feeders Inc. Direct Materials Purchases Budget For the Month Ending January 31 Wood Plastic Required units for production: Bird house Bird feeder Desired units of Inventory, January 31 Total units available Estimated units of inventory, January 1 Total units to be purchased Check My Work 3 more Check My Work uses remaining. All work saved. 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 Assembly Department Hours required for production: Bird house Bird Feeder Total Hourly rate Total direct labor cost 5. Prepare a factory overhead cost budget for January Birding Homes & Feeders Inc Factory Overhead Cost Budget For the Month Ending January 31 Check My Work more Check My Work uses remaining . .. Presc Home Home, End End POUP, 4 5 6 7 8 BOOK Calculator Birding Homes & Feeders Inc. Factory Overhead Cost Budget For the Month Ending January 31 Advertising expense Indirect factory wages Office salaries expense cost Office supplies expense O Sales salaries expense p reder gods sold budget for January. Work in process at the beginning of January is estimated to be is estimated to be $10,500. For those boxes in which you must enter subtracted or negative numbers use a minus Birding Homes & Feeders Inc. Cost of Goods Sold Budget For the Month Ending January 31 Direct materials: Cost of direct materials available for use $$ Cost of direct materials placed in production ss Check My Work 3 more Check My Work uses remaining. Birding Homes & Feeders Inc. Cost of Goods Sold Budget For the Month Ending January 31 Direct materials inventory, January 1 Direct materials inventory, January 31 Direct materials purchases Factory overhead for use $$ Finished goods inventory, January 1 Finished goods inventory, January 31 C orrec MOLTIGE plucco production $$ Total manufacturing costs Total work in process during period Cost of goods manufactured Cost of finished goods available for sale Cost of goods sold 7. Prepare a selling and administrative expenses budget for January Check My Work 3 more Check My Work uses remaining. eBook Calculator Birding Homes & Feeders Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 Selling expenses: Depreciation expense-office equipment Miscellaneous administrative expense Office salaries expense Office supplies expense Sales salaries expense Telephone expense-administrative Total administrative expenses Total operating expenses 8. Prepare a budgeted income statement for January. In the other revenue and expense section, indicate Birding Homes & Feeders Inc. Budgeted Income Statement For the Month Ending January 31 Operating expenses: eBook Calculator Total administrative expenses Total operating expenses 8. Prepare a budgeted Income statement for January. In the other revenue and expense section, indicate expe Birding Homes & Feeders Inc. Budgeted Income Statement For the Month Ending January 31 Gross profit Income before income tax Interest expense Interest revenue Revenue from sales CA penses Operating income $5 Other revenue and expense: Income before income tax Net Income Check My Work 3 more Check My Work uses remaining