Budgeted Income Statement and Supporting Budgets The budget director of Feathered Friends 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 December: a. Estimated sales for December: 3,200 units at Bird house $50 per unit 3,000 units at Bird feeder $70 per unit b. Estimated inventories at December 1: Direct materials: Wood 200 ft. Plastic 240 lbs. Finished products: Bird house 320 units at $27 per unit 270 units at $40 per unit Bird feeder c. Desired inventories at December 31: Direct materials: Wood 220 ft. 200 lbs. Plastic Finished products: Finished products: Bird house 290 units at $27 per unit 250 units at $41 per unit Bird feeder d. Direct materials used in production: In manufacture of Bird House: Wood 0.80 ft. per unit of product 0.50 lb. per unit of product Plastic In manufacture of Bird Feeder: 1.20 ft. per unit Wood of product 0.75 lb. per unit Plastic of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $7.00 per ft. Plastic $1.00 per Ib. f. Direct labor requirements: Bird House: Fabrication Department 0.20 hr. at $16 per hr. Fabrication Department 0.20 hr. at $16 per hr. 0.30 hr. at $12 per hr. Assembly Department Bird Feeder: Fabrication Department 0.40 hr. at $16 per hr. 0.35 hr. at $12 per hr. Assembly Department g. Estimated factory overhead costs for December: Indirect factory wages Depreciation of plant and equipment Power and light $75,000 23,000 6,000 5,000 Insurance and property tax h. Estimated operating expenses for December: Sales salaries expense $70,000 18,000 21,000 Advertising expense Office salaries expense Depreciation expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense-selling 600 550 250 4,000 eBook Calculator Telephone expense--selling 550 250 Telephone expense-administrative 4,000 200 Travel expense-selling Office supplies expense Miscellaneous administrative expense 1. Estimated other income and expense for December: Interest revenue 400 $200 122 Interest expense j. Estimated tax rate: 30% Required: 1. Prepare a sales budget for December. Feathered Friends Inc. Sales Budget For the Month Ending December 31 Unit Sales Unit Selling Volume Price Total Sales Bird house Bird feeder Total revenue from sales 2. Prepare a production budget for December. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Feathered Friends Inc. Production Budget For the Month Ending December 31 Units Bird House Bird Feeder 3. Prepare a direct materials purchases budget for December. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Feathered Friends Inc. Direct Materials Purchases Budget For the Month Ending December 31 Wood Plastic Total Required units for production: Bird house Bird feeder Desired units of inventory, December 31 Total units available Estimated units of inventory, December 1 Total units to be purchased Unit price Total direct materials to be purchased 4. Prepare a direct labor cost budget for December Feathered Friends Inc. Direct Labor Cost Budget For the Month Ending December 31 Fabrication Department Assembly Department Total Hours required for production: Bird house Bird feeder Total Hourly rate Total direct labor cost 5. Prepare a factory overhead cost budget for December. Feathered Friends Inc. Factory Overhead Cost Budget For the Month Ending December 31 Total factory overhead cost 6. Prepare a cost of goods sold budget for December. Work in process at the beginning of December is estimated to be $29,000, and work in process at the end of December is estimated to be $35,400. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Feathered Friends Inc. Cost of Goods Sold Budget For the Month Ending December 31 Direct materials: Cost of direct materials available for use Cost of direct materials placed in production s Total manufacturing costs Total work in process during period eBook Calculator For the Month Ending December 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 December Feathered Friends Inc. Selling and Administrative Expenses Budget For the Month Ending December 31 Selling expenses: $ $ Total selling expenses Administrative expenses: Tuli II Total administrative expenses Total onerating exnenses 8. Prepare a budgeted income statement for December. In the other revenue and expense section, indicate expenses as negative amounts. Feathered Friends Inc. Budgeted Income Statement For the Month Ending December 31 Operating expenses: Total operating expenses Income from operations Other revenue and expense: SS Income before income tax Net income