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 Bird feeder 4,500 units at $75 per unit b. Estimated inventories at January 1: Direct materials: Wood 220 ft. Plastic 250 lb. Finished products: Birdhouse 300 units at $23 per unit Bird feeder 240 units at $34 per unit c. Desired inventories at January 31: Direct materials: Wood 180 ft. Plastic 210 lb. Finished products: Plastic 210 lb. Finished products: Birdhouse 340 units at $23 per unit Bird feeder 200 units at $34 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 $8.00 per ft. Plastic $1.20 per lb. f. Direct labor requirements: Birdhouse: Fabrication Department 0.20 hr. at $15 per hr. Assembly Department 0.30 hr. at $12 per hr. Fabrication Department 0.20 hr. at $15 per hr. 0.30 hr. at $12 per hr. Assembly Department Bird Feeder: Fabrication Department 0.40 hr. at $15 per hr. Assembly Department 0.35 hr. at $12 per hr. g. Estimated factory overhead costs for January: Indirect factory wages $80,000 Depreciation of plant and equipment 25,000 Power and light 8,000 2,000 Insurance and property tax h. Estimated operating expenses for January: Sales salaries expense $90,000 Advertising expense 20,000 Office salaries expense 18,000 Depreciation expense-office equipment 800 Telephone expense-selling 500 Telephone expense-administrative 200 Travel expense-selling 5,000 Travel expense-selling 5,000 Office supplies expense 250 450 Miscellaneous administrative expense i. Estimated other income and expense for January: Interest revenue $300 224 Interest expense j. Estimated tax rate: 30% 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 Insurance and property tax Total 6. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $29,000, and work in process at the end of January is estimated to be $35,400. 6. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $29,000, and work in process at the end of January is estimated to be $35,400. Birds of a Feather 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 for use Cost of direct materials placed in production HIIT 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 Duaget ror January. Birds of a Feather Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 Selling expenses: Sales salaries expense 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 Total administrative expenses Total operating expenses 8. Prepare a budgeted income statement for January. Birds of a Feather Inc. Budgeted Income Statement For the Month Ending January 31 Selling and administrative expenses: $ Total selling and administrative expenses Other revenue: For the Month Ending January 31 Selling and administrative expenses: Total selling and administrative expenses Other revenue: Other expenses