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 at $55 per unit 4,500 units at $75 per unit Bird feeder b. Estimated inventories at January 1 Direct materials: 220 ft Wood Plastic 250 lb. Finished products: Birdhouse 300 units at $23 per unit 240 units at $34 per unit Bird feeder c. Desired inventories at January 31: Direct materials: 180 ft. Wood 210 lb. Plastic Finished products: 340 units at $23 per unit Birdhouse 200 units at $34 per unit Bird feeder d. Direct materials used in production: In manufacture of BirdHouse: 0.80 ft. per unit of product Wood 0.50 lb. per unit of product Plastic In manufacture of Bird Feeder: Previou Plastic 0.50 lb. per unit of product In manufacture of Bird Feeder 1.20 ft. per unit of product Wood 0.75 lb. per unit of product Plastic e. Anticipated cost of purchases and beginning and ending inventory of direct materials $8.00 per ft Wood $1.20 per Ib Plastic f. Direct labor requirements: Birdhouse 0.20 hr. at $15 per hr Fabrication Department 0.30 hr. at $12 per hr. Assembly Department Bird Feeder: 0.40 hr. at $15 per hr Fabrication Department 0.35 hr. at $12 per hr. Assembly Department g. Estimated factory overhead costs for January: $80,000 Indirect factory wages 25,000 Depreciation of plant and equipment 8,000 Power and light 2,000 Insurance and property tax h. Estimated operating expenses for January: $90,000 Sales salaries expense 20,000 Advertising expense 18,000 Office salaries expense 800 Depreciation expense-office equipment 500 Telephone expense-selling 200 Telephone expense-administrative 5,000 Travel expense-selling Office supplies expense Miscellaneous administrative expense Estimated other income and expense for January $300 Interest revenue 224 Interest expense .Estimated tax rate: 30% Required: 1. Prepare a sales budget for January Birds of a Feather Inc. Sales Budget For the Month Ending January 31 Unit Selling Unit Sales Total Sales Price Volume S Birdhouse Bird feeder Total revenue from sales 2. Prepare a production budget for January Birds of a Feather Inc. Production Budget For the Month Ending January 31 Units Birdhouse Bird Feeder 2. Prepare a production budget for January Birds of a Feather Inc. Production Budget For the Month Ending January 31 Units Birdhouse Bird Feeder Expected units to be sold Plus desired inventory, January 31 Total Less estimated inventory, January 1 Total units 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 Plastic Wood Required units for production: Birdhouse Bird feeder Plus desired units of inventory, January 31 Total Less estimated units of inventory, January 1 Birds of a Feather Inc. Direct Materials Purchases Budget For the Month Ending January 31 Wood Plastic Required units for production: Birdhouse Bird feeder Plus desired units of inventory, January 31 tal 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 Total Assembly Department Department Hours required for production: Birdhouse 2-3 Exercises &P 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 Total Assembly Department Department purs required for production: Birdhouse Bird feeder Total Hourly rate Total direct labor cost 5. Prepare a factory overhead cost budget for January Birds of a Feather Inc. Factory Overhead Cost Budget For the Month Ending January 31 Indirect factory wages Depreciation of plant and equipment Power and light Previous Birds of a Feather 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 timeted Prepare a cost of goods sold budget for January Work in process at the beginning of enury $29,000, and work in process at the end of January is estimated to be $39,460 Birds of a Feather Inc Cost of Goods Sold Budget For the Month Ending January 31 Drect materials: of dre materials evailable Ch r mterials placed in Birds of a Feather Inc. Cost of Goods Sold Budget For the Month Ending January 31 Direct materials: Cost of direct materials available or use Cost of direct materials placed in production 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 46 B. Prepare a budgeted income statement for January Birds of a Feather Inc. Budgeted Income Statement For the Month Ending January 31 Selling and ad ministrative expenses: Total selling and administrative expenses Other revenue: Other expenses