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: Birdhouse 6,000 units at $55 per unit Bird feeder 4,500 units at $75 per unit b. Estimated inventories at January 1: Direct materials: Wood 220 ft. Plastic 250 lb. Finished products: 1 Birdhouse 300 units at $23 per unit Bird feeder 240 units at $34 per unit c. Desired inventories at January 31: Direct materials: Wood 180 ft. Plastic 210 lb. Finished products: Birdhouse 340 units at $23 per unit Bird feeder 200 units at $34 per unit d. 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 e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $8.00 per ft. Plastic $1.20 per lib. f. Direct labor requirements: Birdhouse: 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. Assembly Department 0.35 hr. at $12 per hr. g. Estimated factory overhead costs for January: Indirect factory wages Depreciation of plant and equipment Power and light $80,000 25,000 - 8,000 2,000 $90,000 20,000 18,000 800 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-selling Office supplies expense Miscellaneous administrative expense i. Estimated other income and expense for January: Interest revenue Interest expense j. Estimated tax rate: 30% 500 200 5,000 250 450 $300 224 6. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $29,000, and work in process at the end of January is estimated to be $35,400. 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 s 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, 8. Prepare a budgeted income statement for January. Birds of a Feather Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 Birds of a Feather Inc. Budgeted Income Statement For the Month Ending January 31 Selling expenses: $ Sales salaries expense Advertising expense Telephone expense-selling Travel expense-selling Selling and administrative Total selling expenses expenses: Administrative expenses: Office salaries expense Depreciation expense-office equipment Total selling and administrative expenses Telephone expense- administrative Other revenue: Other expenses: Office supplies expense Miscellaneous administrative expense Total administrative expenses Total operating expenses