Budgeted Income Statement and Supporting Budgets The budget director of Birding Homes & Feeders 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:?

What are the red X answer....

a. Estimated sales for January: Bird house 15,000 units at $25 per unit 40,000 units at $15 per unit Bird feeder b. Estimated inventories at January 1: Direct materials: 600 ft. Wood Plastic Finished products: 1,000 lbs. Bird house 1,000 units at $15 per unit 2,500 units at $8 per unit Bird feeder c. Desired inventories at January 31: Direct materials: Wood Plastic 500 ft. 1,250 lbs. Finished products: Bird house 1,500 units at $15 per unit 3,000 units at $8 per unit Bird feeder Assembly Department 0.10 hr. at $12 per hr. $40,000 20,000 10,000 5,000 g. Estimated factory overhead costs for January: 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 Travel expense-selling Office supplies expense Miscellaneous administrative expense i. Estimated other revenue and expense for January: Interest revenue Interest expense j. Estimated tax rate: 25% $125,000 80,000 40,000 4,000 25,000 2,500 3,500 $4,540 3,000 Required: 1. Prepare a sales budget for January. d. Direct materials used in production: In manufacture of Bird House: 0.80 ft. per unit Wood of product 0.10 lb. per unit Plastic of product In manufacture of Bird Feeder: 0.20 ft. per unit Wood of product 1.00 lb. per unit Plastic of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $2.50 per ft. Plastic $0.80 per Ib. f. Direct labor requirements: Bird House: 0.40 hr. at $18 Fabrication Department per hr. 0.20 hr. at $12 Assembly Department per hr Bird Feeder: 0.25 hr. at $18 Fabrication Department per hr. Birding Homes & Feeders Inc. Sales Budget For the Month Ending January 31 Unit Sales Volume Unit Selling Price Total Sales Bird house 15,000 $$ 25 $ $ 375,000 Bird feeder 40,000 15 600,000 Total revenue from sales $ $ 975,000 2. Prepare a production budget for January. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Birding Homes & Feeders Inc. Production Budget For the Month Ending January 31 Units Bird House Bird Feeder Expected units to be sold 15,000 40,000 1,500 3,000 43,000 Desired inventory, January 31 Total units available Estimated inventory, January 1 Total units to be produced 16,500 1,000 x 2,500 x 15,500 40,500 3. Prepare a direct materials purchases budget for January. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Birding Homes & Feeders Inc. Direct Materials Purchases Budget For the Month Ending January 31 Wood Plastic Total Required units for production: Bird house 12,400 1,550 Bird feeder 8,100 40,500 Desired units of inventory, January 31 500 1,250 Total units available 21,000 43,300 600 x 1,000 X Estimated units of inventory, January 1 Total units to be purchased 20,400 42,300 Unit price $X$ 2.5 $X$ 0.8 Total direct materials to be purchased $ $ 51,000 $ $ 33,840 $ $ 84,840 4. Prepare a direct labor cost budget for January. Birding Homes & Feeders Inc. Direct Labor Cost Budget For the Month Ending January 31 Fabrication Assembly Department Department Total Hours required for production: Bird house Bird feeder 6,200 3,100 10,125 4,050 Total 16,325 7,150 Hourly rate $X$ 18 $ X$ 12 Total direct labor cost $ $ 293,850 $ 85,800 $ $ 379,650 5. Prepare a factory overhead cost budget for January. 40,000 Birding Homes & Feeders 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 20,000 10,000 5,000 Total factory overhead cost 75,000 6. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $9,000, and work in process at the end of January is estimated to be $10,500. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Birding Homes & Feeders Inc. Cost of Goods Sold Budget For the Month Ending January 31 35,000 Finished goods inventory, January 1 Work in process inventory, January 1 $ $ 9,000 Direct materials: $ $ 2,300 Direct materials inventory, January 1 Direct materials purchases 84,840 Cost of direct materials available for use 87,140 Direct materials inventory, January 31 2,250 $ $ 84,890 Cost of direct materials placed in production Direct labor 379,650 Factory overhead 75,000 Total manufacturing costs 539,540 Total work in process during period $ $ 548,540 Work in process inventory, January 31 10,500 X Cost of goods manufactured 538,040 Cost of finished goods available for sale $ $ 573,040 46,500 X Finished goods inventory, January 31 Cost of goods sold $ $ 526,540 7. Prepare a selling and administrative expenses budget for January. Birding Homes & Feeders Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 Selling expenses: Sales salaries expense $ $ 125,000 Advertising expense 80,000 Travel expense-selling 25,000 $ $ 230,000 $$ 40,000 4,000 Total selling expenses Administrative expenses: Office salaries expense Depreciation expense-office equipment Office supplies expense Miscellaneous administrative expense Total administrative expenses Total operating expenses 2,500 3,500 50,000 $ $ 280,000 8. Prepare a budgeted income statement for January. In the other revenue and expense section, indicate expenses as negative amounts. $$ 975,000 526,540 $$ 448,460 Birding Homes & Feeders Inc. Budgeted Income Statement For the Month Ending January 31 Revenue from sales Cost of goods sold Gross profit Operating expenses: Selling expenses $ $ 230,000 Administrative expenses 50,000 Total operating expenses Operating income Other revenue and expense: Interest revenue $$ 4,540 Interest expense 3,000 x 280,000 $ $ 168,460 1,540 $ $ 170,000 Income before income tax Income tax expense 42,500 Net income $$ 127,500