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, nas 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 11 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 31: Direct materials: Wood 500 Ft 1,250 lbs Plastic Finished products: 1,500 units at $15 per unit Bird house 300 units at $8 d. Direct materials used in production In manufacture of Bird House: Wood 0.80 ft. per unit of product 0.10 ib. per unit of product Plastic In manufacture of Bird Feeder: Wood 0.20 ft. per unit 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 $12 Assembly Department per hr Bird Feeder: Fabrication Department 0.25 hr at $18 per hr 0.10 hr. at $12 Assembly Department per hr eBook $40,000 20,000 10,000 5,000 9. 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 expense-office equipment Travel expense--selling office supplies expense Miscellaneous administrative expense 1. Estimated other revenue and expense for January: Interest revenue $125,000 80,000 40,000 4,000 25,000 2,500 3,500 $4,540 3,000 Interest expense J. Estimated tax rate: 25% 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 minus sign. Birding Homes & Feeders Inc. Production Budget For the Month Ending January 31 Units Bird House Bird Feeder 3. Prepare a direct materiais purchases budget for January. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Birding Homes & Feeders Inc. Direct Materials Purchases Budget For the Month Ending January 31 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 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 Assembly Department Total 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 Total factory overhead cost 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: 55 Cost of direct materials available for use Cost of direct materiais placed in production Total manufacturing costs Total work in process during period Cost of goods manufactured 55 Cost of finished goods available for sale Next