Budgeted income statement and supporting budgetsThe 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:a$.$ Estimated sales for January: Bird house $15,000$ units at $$25$ per unit Bird feeder $40,000$ units at $$15$ per unitb. Estimated inventories at January $1$:Direct materials: Wood $600$ ft$.$ Plastic $1,000$ lbs$.$Finished products: Bird house $1,000$ units at $$15$ per unit Bird feeder $2,500$ units at $$8$ per unitc. Desired inventories at January $31$:Direct materials: Wood $500$ ft$.$ Plastic $1,250$ lbs$.$Finished products: Bird house $1,500$ units at $$15$ per unit Bird feeder $3,000$ units at $$8$ per unitd. Direct materials used in production:In manufacture of Bird House: Wood $0\mathrm{.}80$ ft$.$ per unit of product Plastic $0\mathrm{.}10$ lb$.$ per unit of productIn manufacture of Bird Feeder: Wood $0\mathrm{.}20$ ft$.$ per unit of product Plastic $1\mathrm{.}00$ lb$.$ per unit of producte. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $$2\mathrm{.}50$ per ft$.$ Plastic $$0\mathrm{.}80$ per lb$.$f$.$ Direct labor requirements:Bird House: Fabrication Department $0\mathrm{.}40$ hr$.$ at $$18$ per hr$.$ Assembly Department $0\mathrm{.}20$ hr$.$ at $$12$ per hr$.$Bird Feeder: Fabrication Department $0\mathrm{.}25$ hr$.$ at $$18$ per hr$.$ Assembly Department $0\mathrm{.}10$ hr$.$ at $$12$ per hr$.$g$.$ Estimated factory overhead costs for January:Line Item DescriptionAmountIndirect factory wages$$40,000$Depreciation of plant and equipment$20,000$Power and light$10,000$Insurance and property tax$5,000$h$.$ Estimated operating expenses for January:Line Item DescriptionAmountSales salaries expense$$125,000$Advertising expense$80,000$Office salaries expense$40,000$Depreciation expenseoffice equipment$4,000$Travel expenseselling$25,000$Office supplies expense$2,500$Miscellaneous administrative expense$3,500$i$.$ Estimated other revenue and expense for January:Line Item DescriptionAmountInterest revenue$$4,540$Interest expense$3,000$j$.$ Estimated tax rate: $25\%$Required:$1.$ Prepare a sales budget for January.Birding Homes & Feeders Inc.Sales BudgetFor the Month Ending January $31$Line Item DescriptionUnit SalesVolumeUnit SellingPriceTotal SalesBird housefill in the blank $1$$fill in the blank $2$$fill in the blank $3$Bird feederfill in the blank $4$fill in the blank $5$fill in the blank $6$Total revenue from sales $fill in the blank $72.$ Prepare a production budget for January. For those boxes in which you must enter subtracted or negative numbers use a minus sign.Birding Homes & Feeders Inc.Production BudgetFor the Month Ending January $31$Line Item DescriptionUnitsBird HouseUnitsBird Feederfill in the blank $9$fill in the blank $10$fill in the blank $12$fill in the blank $13$fill in the blank $15$fill in the blank $16$fill in the blank $18$fill in the blank $19$fill in the blank $21$fill in the blank $223.$ Prepare a direct materials purchases budget for January. For those boxes in which you must enter subtracted or negative numbers use a minus sign.Birding Homes & Feeders Inc.Direct Materials Purchases BudgetFor the Month Ending January $31$Line Item DescriptionWoodPlasticTotalRequired units for production: Bird housefill in the blank $23$fill in the blank $24$ Bird feederfill in the blank $25$fill in the blank $26$ Desired units of inventory, January $31$fill in the blank $27$fill in the blank $28$ Total units availablefill in the blank $29$fill in the blank $30$ Estimated units of inventory, January $1$fill in the blank $31$fill in the blank $32$ Total units to be purchasedfill in the blank $33$fill in the blank $34$ Unit price$fill in the blank $35$$fill in the blank $36$ Total direct materials to be purchased$fill in the blank $37$$fill in the blank $38$$fill in the blank $394.$ Prepare a direct labor cost budget for January.Birding Homes & Feeders Inc.Direct Labor Cost BudgetFor the Month Ending January $31$Line Item DescriptionFabricationDepartmentAssemblyDepartmentTotalHours required for production: Bird housefill in the blank $40$fill in the blank $41$ Bird feederfill in the blank $42$fill in the blank $43$ Totalfill in the blank $44$fill in the blank $45$ Hourly rate$fill in the blank $46$$fill in the blank $47$ Total direct labor cost$fill in the blank $48$$fill in the blank $49$$fill in the blank $505.$ Prepare a factory overhead cost budget for January.Birding Homes & Feeders Inc.Factory Overhead Cost BudgetFor the Month Ending January $31$Line Item DescriptionAmount$fill in the blank $52$fill in the blank $54$fill in the blank $56$fill in the blank $58$Total factory overhead cost$fill in the blank $596.$ Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $$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 BudgetFor the Month Ending January $31$Line Item DescriptionAmount $fill in the blank $61$ $fill in the blank $63$ Direct materials: $fill in the blank $65$ fill in the blank $67$ Cost of direct materials available for use$fill in the blank $68$ fill in the blank $70$ Cost of direct materials placed in production$fill in the blank $71$ fill in the blank $73$ fill in the blank $75$ Total manufacturing costs fill in the blank $76$ Total work in process during period $fill in the blank $77$ fill in the blank $79$ Cost of goods manufactured fill in the blank $80$Cost of finished goods available for sale $fill in the blank $81$ fill in the blank $83$Cost of goods sold $fill in the blank $847.$ Prepare a selling and administrative expenses budget for January.Birding Homes & Feeders Inc.Selling and Administrative Expenses BudgetFor the Month Ending January $31$Line Item DescriptionAmountSelling expenses: $fill in the blank $86$ fill in the blank $88$ fill in the blank $90$ Total selling expenses $fill in the blank $91$Administrative expenses: $fill in the blank $93$ fill in the blank $95$ fill in the blank $97$ fill in the blank $99$ Total administrative expenses fill in the blank $100$Total operating expenses $fill in the blank $1018.$ Prepare a budgeted income statement for January. In the Other revenue and expense section, indicate expenses as negative amounts.Birding Homes & Feeders Inc.Budgeted Income StatementFor the Month Ending January $31$Line Item DescriptionAmount $fill in the blank $103$ fill in the blank $105$ $fill in the blank $107$Operating expenses: $fill in the blank $109$ fill in the blank $111$ Total operating expenses fill in the blank $112$Operating income $fill in the blank $113$Other revenue and expense: $fill in the blank $115$ fill in the blank $117$fill in the blank $118$Income before income tax $fill in the blank $119$ fill in the blank $121$Net income $fill in the blank $122$