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 2014:

1. Prepare a sales budget for December.

2. Prepare a production budget for December.

3. Prepare a direct materials purchases budget for December.

4. Prepare a direct labor cost budget for December.

5. Prepare a factory overhead cost budget for December.

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.

7. Prepare a selling and administrative expenses budget for December.

8. Prepare a budgeted income statement for December.