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:

Estimated sales for December:

Bird house 3,200 units at $50 per unit

Bird feeder 3,000 units at $70 per unit

Estimated inventories at December 1:

Direct materials:

Wood 200 ft.

Plastic 240 lbs.

Finished products:

Bird house 320 units at $27 per unit

Bird feeder 270 units at $40 per unit

Desired inventories at December 31:

Direct materials:

Wood 220 ft.

Plastic 200 lbs.

Finished products:

Bird house 290 units at $27 per unit

Bird feeder 250 units at $41 per unit

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

Anticipated cost of purchases and beginning and ending inventory of direct materials:

Wood $7.00 per ft.

Plastic $1.00 per lb.

Direct labor requirements:

Bird House:

Fabrication Department 0.20 hr. at $16 per hr.

Assembly Department 0.30 hr. at $12 per hr.

Bird Feeder:

Fabrication Department 0.40 hr. at $16 per hr.

Assembly Department 0.35 hr. at $12 per hr.

Estimated factory overhead costs for December:

Indirect factory wages $75,000

Depreciation of plant and equipment 23,000

Power and light 6,000

Insurance and property tax 5,000

Estimated operating expenses for December:

Sales salaries expense $70,000

Advertising expense 18,000

Office salaries expense 21,000

Depreciation expenseoffice equipment 600

Telephone expenseselling 550

Telephone expenseadministrative 250

Travel expenseselling 4,000

Office supplies expense 200

Miscellaneous administrative expense 400

Estimated other income and expense for December:

Interest revenue $200

Interest expense 122

Estimated tax rate: 30%

***please disregard the last photo. its a Duplicate**

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 nega- 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 subt 3. Prepare a direct materials purchases budget for December. For those boxes in which you must enter subtracted or negative nu Feathered Friends Inc. Direct Materials Purchases Budget For the Month Ending December 31 Wood plastic 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: Feathered Friends Inc. Direct Labor Cost Budget For the Month Ending December 31 Fabrication Assembly Department 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 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 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 Drenare a callinn and administratie enance hinnat for neremher Feathered Friends Inc. Selling and Administrative Expenses Budget For the Month Ending December 31 Selling expenses: $ Total selling expenses Administrative expenses: Total administrative expenses Total operating expenses 8. Prepare a budgeted income statement for December. In the other revenue and expense section, indicate Feathered Friends Inc. Total administrative expenses Total operating expenses 8. Prepare a budgeted income statement for December. In the other revenue and expense section, indicat Feathered Friends Inc. Budgeted Income Statement For the Month Ending December 31 Operating expenses: Total operating expenses Income from operations Other revenue and expense: Income before income tax Net income 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 nega 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 nu Feathered Friends Inc. Direct Materials Purchases Budget For the Month Ending December 31 Wood plastic 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: Feathered Friends Inc. Direct Labor Cost Budget For the Month Ending December 31 Fabrication Assembly Department 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 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 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 Orans allinna nini anahudnet for herember Feathered Friends Inc. Selling and Administrative Expenses Budget For the Month Ending December 31 Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total operating expenses 8. Prepare a budgeted income statement for December. In the other revenue and expense section, indicate Feathered Friends Inc. Total administrative expenses Total operating expenses 8. Prepare a budgeted income statement for December. In the Other revenue and expense section, indicat Feathered Friends Inc. Budgeted Income Statement For the Month Ending December 31 Operating expenses: Total operating expenses Income from operations Other revenue and expense: Income before income tax Net income 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 nega Feathered Friends Inc. Production Budget For the Month Ending December 31 Units Bird House Bird Feeder