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: 6,000 units at $55 per unit Bird feeder 4,500 units at $75 per unit b. Estimated inventories at January 1: Direct materials: 220 ft. 250 lb. Finished products: 300 units at $23 per unit Bird feeder 240 units at $34 per unit c. Desired inventories at January 31: Direct materials: 180 ft. 210 lb. Plastic Finished products: 340 units at $23 per unit Bird feeder 200 units at $34 per unit d. Direct materials used in production: In manufacture of BirdHouse: 0.80 ft. per unit of product 0.50 lb. per unit of product In manufacture of Bird Feeder: 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 $8.00 per ft 1.20 per lb Plastic f. Direct labor requirements: Fabrication Department 0.20 hr at $15 per hr Assembly Department 0.30 hr. at $12 per hr. Bird Feeder: Fabrication Department 0.40 hr at $15 per hr 0.35 hr at $12 per hr Estimated factory overhead costs for January: g. Indirect factory wagers $80,000 g. Estimated factory overhead costs for January: $80,000 Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax h. Estimated operating expenses for January: Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense-sllng 5,000 Office supplies expense Miscellaneous administrative expense i. Estimated other income and expense for January: $300 Interest revenue Interest expense j. Estimated tax rate: 30% Required: 1. Prepare a sales budget for January. Birds of a Feather Inc. Sales Budget For the Month Ending January 31 Unit Sales Unit Selling Total Sales Volume Price Birdhouse 6,000 55 330,000 Bird feeder 4,500 337,000 75 Total revenue from sales 667,500 2. Prepare a production budget for January. Birds of a Feather Inc. Production Budget For the Month Ending January 31 Units Bird Feeder Expected units to be sold Plus desired inventory, January 31 340 200 Total Less estimated inventory, January 1 300 240 Total units to be produced 3. Prepare a direct materials purchases budget for January. Birds of a Feather Inc. Direct Materials Purchases Budget For the Month Ending January 31 Wood Plastic Total Required units for production: Birdhouse Bird feeder Plus desired units of inventory, January 31 180 210 Total Less estimated units of inventory, January 1 200 250 Total units to be purchased Unit price 1.2 Total direct materials to be purchased 4. Prepare a direct labor cost budget for January. Birds of a Feather Inc. Direct Labor Cost Budget For the Month Ending January 31 Fabrication Total Assembly Department Department Hours required for production: Birdhouse Bird feeder Total Hourly rate Total direct labor cost 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 , prepare a cost of goods sold budget or January. Work n process at the beginn gJanuary s estimated to be ork in process at the en -anuary is estimated to b65-00 29,0 ar o 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 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 budget for January Birds of a Feather Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 Seling expensesi 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 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: Other expenses