Budgeted Income Statement and Supporting Budgets

The budget director of Birds of a Feather 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:

Estimated sales for January:

Birdhouse6,000 units at $55 per unit

Bird feeder4,500 units at $75 per unit

Estimated inventories at January 1:

Direct materials:

Wood220 ft.

Plastic250 lb.

Finished products:

Birdhouse300 units at $23 per unit

Bird feeder240 units at $34 per unit

Desired inventories at January 31:

Direct materials:

Wood180 ft.

Plastic210 lb.

Finished products:

Birdhouse340 units at $23 per unit

Bird feeder200 units at $34 per unit

Direct materials used in production:

In manufacture of BirdHouse:

Wood0.80 ft. per unit of product

Plastic0.50 lb. per unit of product

In manufacture of Bird Feeder:

Wood1.20 ft. per unit of product

Plastic0.75 lb. per unit of product

Anticipated cost of purchases and beginning and ending inventory of direct materials:

Wood$8.00 per ft.

Plastic$1.20 per lb.

Direct labor requirements:

Birdhouse:

Fabrication Department0.20 hr. at $15 per hr.

Assembly Department0.30 hr. at $12 per hr.

Bird Feeder:

Fabrication Department0.40 hr. at $15 per hr.

Assembly Department0.35 hr. at $12 per hr.

Estimated factory overhead costs for January:

Indirect factory wages$80,000

Depreciation of plant and equipment25,000

Power and light8,000

Insurance and property tax2,000

Estimated operating expenses for January:

Sales salaries expense$90,000

Advertising expense20,000

Office salaries expense18,000

Depreciation expenseoffice equipment800

Telephone expenseselling500

Telephone expenseadministrative200

Travel expenseselling5,000

Office supplies expense250

Miscellaneous administrative expense450

Estimated other income and expense for January:

Interest revenue$300

Interest expense224

Estimated tax rate: 30%

Required:

1. Prepare a sales budget for January.

22-3 Exercises & Problems eBock Calculator Budgeted Income Statement and Supporting Budgets The budget director of Birds of a Feather 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 6,000 units $55 per unit Bird feeder 4,500 units at 575 per unit b. Estimated Inventores at January 1: Direct materials: 220 Plastic 250. Finished products: 300 units at $23 per unit 240 units at $34 per unit c. Desired Inventories at January 31: Direct materials: 180 2101 Finished products 340 units at $23 per un 200 unts d. Direct materials used in production 0.00 per of product Mament core: 0.0 Imal intruche Sore and Suit Asset trading MacBook Pro signment cake progressa false 22:3 Exercises & Problems Book Calculator Plastic 0.50 lb. per unit of product In manufacture of Bird Feeder Wood 1.20 ft. per unit of product 0.75 b. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materia $5.00 per $1.20 per lb 1. Direct labor requirements: Birdhouse Fabrication Department 0.20 h. 15 per hr. 0.30h. at 512 perhe Assembly Department Bird Feeder: Fabrication Department 0.40 hr. at $15 per hr. Assembly Department 0.35 h. a $12 per hr. 9. Estimated factory overhead costs for January Indirect factory wages Depreciation of plant and equipment 8.000 WWWVVVVVA Insurance and property tax h. Estimated operating expenses for January Sales salaries expense Advertising expense $90,000 e nes erense Check My Win 2 more Cho My Wones renang Previous Email instructor Save and submit Regment for Gradies MacBook Pro % A & @ 2 # 3 $ 4 6 7 8 9 10 GAR Depreciation expense oice equipment Telephone expenses Telephone expense-administrative Travel expenseseling Office Supplies expense Miscellaneous administrative expense Estimated the income and expense for January Interest revenue Interest expense Estimated tax rate: 30% Required: 1. Prepare a sales budget for anuary Birds of a Feather Inc Sales Budget For the Month Ending January 31 Unit Sales Una Seling Total Sales Deck My Work 2 more My Wo n g Assignment Score: 0.0% Emaictor Save and submit MacBook Pro 2. Prepare a production budget for January Birds of a Feather Inc. Production Budget For the Month Ending January 31 Units Bird Feede Expected units to be sold Plus desired inventory, January 31 Less estimated Inventory, January 1 Total unts to be produced 3. Prepare a direct materials purchases budget for January Birds of a Feather Inc. Direct Materials Purchases Budget For the Month Ending January 31 Wood Required units for production Birdhouse Bird feeder Cea My Won 2 mor Check My Work i ng Assignment Score: 0.0% Email instructor Save and Exit Su MacBook Pro ces & Problems eBook Calculator Bird feeder Plus desired units of inventory, January 31 Less 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 Birds of a Feather Inc. Direct Labor Cost Budget For the Month Ending January 31 Fabrication Department Assembly Department Hours required for production Birdhouse Bird feeder Total direct labor cost Check My Won 2 more Check My Wores remaining Email instructor Save and Eas t MacBook Pro ebook Cost of direct materials available Calculator for use Cost of direct materiais placed in production T a cturing costs Total work in process during the Period Cast of goodsa ctured Cost of finished goods for Cost of goods sold 7. Prepare a sing and administrative expenses budget for January Birds of a Feather in Selling and Administrative Expenses Budget For the Month Ending January 31 Email Instructor Block Calculator 7. Prepare a seling and administrative expenses budget for January Birds of a Feather Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 Sering expenses: Sales salaries expense Advertising expense Telephone expense-seng Travel expenseseling Total selling expenses Ocean Depreciations equipment Telephone expense-administrative Total penting ense 3. Prepare a buted income statement for January Instructor MacBook Pro ebook Calculator 8. Prepare a budgeted income statement for January Budgeted Income Statement Fot 31 Selling and administrative expenses Totalseng and administrative expenses Other revenue Other expenses Cred 2 more Check My Worm Assignment Score: 0.0% Emaltstructor Save and MacBook Pro 22-3 Exercises & Problems eBock Calculator Budgeted Income Statement and Supporting Budgets The budget director of Birds of a Feather 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 6,000 units $55 per unit Bird feeder 4,500 units at 575 per unit b. Estimated Inventores at January 1: Direct materials: 220 Plastic 250. Finished products: 300 units at $23 per unit 240 units at $34 per unit c. Desired Inventories at January 31: Direct materials: 180 2101 Finished products 340 units at $23 per un 200 unts d. Direct materials used in production 0.00 per of product Mament core: 0.0 Imal intruche Sore and Suit Asset trading MacBook Pro signment cake progressa false 22:3 Exercises & Problems Book Calculator Plastic 0.50 lb. per unit of product In manufacture of Bird Feeder Wood 1.20 ft. per unit of product 0.75 b. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materia $5.00 per $1.20 per lb 1. Direct labor requirements: Birdhouse Fabrication Department 0.20 h. 15 per hr. 0.30h. at 512 perhe Assembly Department Bird Feeder: Fabrication Department 0.40 hr. at $15 per hr. Assembly Department 0.35 h. a $12 per hr. 9. Estimated factory overhead costs for January Indirect factory wages Depreciation of plant and equipment 8.000 WWWVVVVVA Insurance and property tax h. Estimated operating expenses for January Sales salaries expense Advertising expense $90,000 e nes erense Check My Win 2 more Cho My Wones renang Previous Email instructor Save and submit Regment for Gradies MacBook Pro % A & @ 2 # 3 $ 4 6 7 8 9 10 GAR Depreciation expense oice equipment Telephone expenses Telephone expense-administrative Travel expenseseling Office Supplies expense Miscellaneous administrative expense Estimated the income and expense for January Interest revenue Interest expense Estimated tax rate: 30% Required: 1. Prepare a sales budget for anuary Birds of a Feather Inc Sales Budget For the Month Ending January 31 Unit Sales Una Seling Total Sales Deck My Work 2 more My Wo n g Assignment Score: 0.0% Emaictor Save and submit MacBook Pro 2. Prepare a production budget for January Birds of a Feather Inc. Production Budget For the Month Ending January 31 Units Bird Feede Expected units to be sold Plus desired inventory, January 31 Less estimated Inventory, January 1 Total unts to be produced 3. Prepare a direct materials purchases budget for January Birds of a Feather Inc. Direct Materials Purchases Budget For the Month Ending January 31 Wood Required units for production Birdhouse Bird feeder Cea My Won 2 mor Check My Work i ng Assignment Score: 0.0% Email instructor Save and Exit Su MacBook Pro ces & Problems eBook Calculator Bird feeder Plus desired units of inventory, January 31 Less 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 Birds of a Feather Inc. Direct Labor Cost Budget For the Month Ending January 31 Fabrication Department Assembly Department Hours required for production Birdhouse Bird feeder Total direct labor cost Check My Won 2 more Check My Wores remaining Email instructor Save and Eas t MacBook Pro ebook Cost of direct materials available Calculator for use Cost of direct materiais placed in production T a cturing costs Total work in process during the Period Cast of goodsa ctured Cost of finished goods for Cost of goods sold 7. Prepare a sing and administrative expenses budget for January Birds of a Feather in Selling and Administrative Expenses Budget For the Month Ending January 31 Email Instructor Block Calculator 7. Prepare a seling and administrative expenses budget for January Birds of a Feather Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 Sering expenses: Sales salaries expense Advertising expense Telephone expense-seng Travel expenseseling Total selling expenses Ocean Depreciations equipment Telephone expense-administrative Total penting ense 3. Prepare a buted income statement for January Instructor MacBook Pro ebook Calculator 8. Prepare a budgeted income statement for January Budgeted Income Statement Fot 31 Selling and administrative expenses Totalseng and administrative expenses Other revenue Other expenses Cred 2 more Check My Worm Assignment Score: 0.0% Emaltstructor Save and MacBook Pro