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, has gathered the following data for use in developing the budgeted income statement for January: a. Estimated sales for January: Bird house 15,000 units at $25 per unit 40,000 units at Bird feeder $15 per unit b. Estimated inventories at January 1: 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: 500 ft. Wood 1,250 lbs. Plastic Finished products: per un c. Desired Inventories at January 31: Direct materials: Wood 500 ft. Plastic 1,250 lbs. Finished products: 1,500 units at Bird house $15 per unit 3,000 units at $8 Bird feeder per unit d. Direct materials used in production: In manufacture of Bird House: 0.80 ft. per unit Wood of product 0.10 lb. per unit Plastic of product In manufacture of Bird Feeder: 0.20 ft. per unit Wood of product 1.00 lb. per unit Plastic of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: $2.50 per ft. Wood 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: 0.25 hr. at $18 Fabrication Department per hr. 0.10 hr. at $12 Assembly Department per hr. g. Estimated factory overhead costs for January: Indirect factory wages $40,000 20,000 Depreciation of plant and equipment 10,000 5,000 Power and light Insurance and property tax h. Estimated operating expenses for January: Sales salaries expense $125,000 $125,000 80,000 40,000 4,000 25,000 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 i. Estimated other revenue and expense for January: Interest revenue Interest expense j. Estimated tax rate: 25% 2,500 3,500 $4,540 3,000 Required: 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 Check My Work Calcurror 1. Prepare a sales budget for January Birding Homes & Feeders Inc. Sales Budget For the Month Ending January 31 Unit Sales Unit Selling Volume 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 materials 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 $ X$ $ 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 X$ Hourly rate $ $ $ s $ $ $ 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 $$ Direct materials: Cost of direct materials available for use $$ Cost of direct materials placed in production ss Total manufacturing costs Total work in process during period $$ eBook Calculator Total manufacturing costs Total work in process during period $ Cost of goods manufactured Cost of finished goods available for sale $$ Cost of goods sold $$ 7. Prepare a selling and administrative expenses budget for January. Birding Homes & Feeders Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 Selling expenses: $$ $ $ Total selling expenses Administrative expenses: