Budgeted Income Statement and Supporting Budgets The budget director of Birds and Beyond 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: Birdhouse 7,500 units at $66 per unit Bird feeder 5,000 units at $82 per unit b. Estimated inventories at January 1: Direct materials: Wood 198 ft. Plastic 420 lb. Finished products: Birdhouse 500 units at $28 per unit Bird feeder 210 units at $40 per unit c. Desired inventories at January 31: Direct materials: Wood 220 ft. Plastic 340 lb. Finished products: Birdhouse 400 units at $28 per unit Bird feeder 250 units at $40 per unit d. Direct materials used in production: In manufacture of Bird House: Wood 0.80 ft. per unit of product Plastic 0.50 lb. per unit of product In manufacture of Bird Feeder: Wood 1.20 ft. per unit of product Plastic 0.75 lb. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $9.00 per ft. Plastic $1.40 per lb. f. Direct labor requirements: Birdhouse: Fabrication Department 0.25 hr. at $20 per hr. Assembly Department 0.30 hr. at $15 per hr. Bird Feeder: Fabrication Department 0.40 hr. at $20 per hr. 0.35 hr. at $15 per hr. Assembly Department $92,000 34,000 10,100 2,800 $85,100 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 expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense-selling 17,600 19,200 1,100 1,000 400 3,800 Office supplies expense 350 250 Miscellaneous administrative expense 1. Estimated other income and expense for January: Interest revenue $450 294 Interest expense j. Estimated tax rate: 25% Required: 1. Prepare a sales budget for January. Birds and Beyond Inc. Sales Budget For the Month Ending January 31 Unit Sales Unit Selling Volume Price Total Sales Birdhouse Bird feeder Total revenue from sales $ 2. Prepare a production budget for January. Birds and Beyond Inc. Production Budget For the Month Ending January 31 Units Birdhouse Bird Feeder Expected units to be sold Plus desired inventory, January 31 Total units required Less estimated inventory, January 1 Total units to be produced Birds and Beyond Inc. Direct Materials Purchases Budget For the Month Ending January 31 Wood Plastic Total Required units for production: Birdhouse Bird feeder Plus desired units of inventory, January 31 Total units required Less estimated units of inventory, January 1 Total units to be purchased Unit price Total direct materials to be purchased Birds and Beyond Inc. Direct Labor Cost Budget For the Month Ending January 31 Fabrication Assembly Department Department Total Hours required for production: Birdhouse Bird feeder Total hours required Hourly rate Total direct labor cost $ 5. Prepare a factory overhead cost budget for January. Birds and Beyond Inc. Factory Overhead Cost Budget For the Month Ending January 31 Indirect factory wages Depreciation of plant and equipment Power and light $ Insurance and property tax Total 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 LUDO Total manufacturing costs Total work in process during the 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. Birds and Beyond Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 Selling expenses: Sales salaries expense UA Advertising expense Telephone expense-selling Travel expense-selling Total selling expenses Administrative expenses: Office salaries expense Depreciation expense-office equipment Telephone expense-administrative Office supplies expense Miscellaneous administrative expense Total administrative expenses IT Total operating expenses UF Birds and Beyond Inc. Budgeted Income Statement For the Month Ending January 31 S Operating expenses: $ Total operating expenses Other revenue: s Other expenses