Budgeted Income Statement and Supporting Budgets The budget director of Birding Homes \& Feeders Inc, with the assistance of the controllec, treasurer, production manager, and sales managen has 0athered the following data for use in developing the budgeted income statement for January: a. Estimated sales for January: Bird feeder c. Desired inventories at January 31: Direct materials: Wood Plastic Finished products: Bird house Bird feeder d. Direct materials used in production: In manufacture of Bird House: Wood Plastic In manufacture of Bird Feeder: Wood Plastic 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: Fabrication Department 0.40hr. at $18 per hr. Assembly Department 0.20 hr. at $12 per hr. Bird Feeder: Fabrication Department 0.25 hr. at $18 per hr. Assembly Department 0.10hr, at $12 g. Estimated factory overhead costs for January: Indirect factory wages perhr. Depreciation of plant and equipment Power and light. Insurance and property tax $40,000 20,000 10,000 5,000 h. Estimated operating expenses for January: Sales salaries expense $125,000 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 $125,000 80,000 40,000 i. Estimated other revenue and expense for January: Interest revenue Interest expense j. Estimated tax rate: 25% 1. Prepare a sales budget for January. 2. Prepare a production budget for January. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 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. 4. Prepare a direct labor cost budget for January. 5. Prepare a factory overhead cost budget for January. 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 $ 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. 3. Prepare a budgeted income statement for January. In the other revenue and expense section, indicate expenses as negative amounts