Budgeted Income Statement and Supporting de 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 a. Estimated sales for January 15,000 units Bird house $25 per unit Bird feeder 40,000 units at $15 per unit Estimated Inventories at January 1: Direct materials: Wood 600 Plastic 1,000 lbs Finished products Birdhouse 1,000 units $15 per unit Irdfeeder 2,500 units at per unit c. Desired Inventories at January 31 Direct materials Wood 500 R Plastic 1,250 lbs. Finished products: 1,500 units at Bird house $15 per unit c. Desired inventories at January 31: Direct materials: Wood 500 Plastic 1,250 lbs Finished products: 1,500 units a Bird house $15 per unit 3,000 units at $8 Bird feeder per unit d. Direct materials used in production: In manufacture of Bird House: 0.80 ft. perunt of product 0.10 lb, per unit Plasti of product In manufacture of Bird Feeder 0.20 Rt. per unit Wood of product Plastic 1.00 ib. per unit of product Anticipated cost of purchases and beginning and ending inventory of direct materiais Wood $2.50 per Pustic 10.30 per Wood 1. Direct labor requirements Bird House Fabrication Department 0.40 hr at $18 per 0.20 hr. at $12 per Assembly Department Bird Feeder Fabrication Department 0.25 h at $18 per le 0.10 hr at $12 per 140,000 20,000 10.000 5.000 Assembly Department Estimated factory overhead costs for January Indirectory was Depreciation of plant and eviment 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 $125,000 80.000 40,000 4,000 25,000 2.500 3,500 Estimated other revenue and expense for January Interest revenue Interest expense Estimated tax rate: 25% $4,540 3,000 Required 1. Prepare a sales budget for January Birding Homes A Feeders Inc. Sales Budget For the Month Ending January 31 Unit Sales Unit Selling Volume Price Total Sales Bird house 15,000 25 375,000 600,000 Bird Feeder 40,000 15 Total revenue from sales 975,000 2. Prepare a production budget for January. For those bones 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 Dereventory January 1,500 3,000 Total units avail 16,500 43,000 Estimated Inventory wary 1,000 -2,500 total un to be wroduced 15,500 40,500 3. Prepare a direct materials durchases budget for Aanuary. 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 12,400 1,5SO 40,500 3,100 1,250 500 Required units for productions Bird house Bird Feeder Desired units of inventory, January 31 Total units available Estimated units of inventory, January 1 Total units to be purchased Unte Total direct materials to be purchased 21,750 -600 42,550 1,000 21,150 41,550 SM 2.50 0.00 32,675 33.240 56,115 4. Prepare a direct labor cost budget for January Birding Homes & Feeders Inc. Direct Labor Cost Budget For the Month Ending January 31 Fabrication Department Assembly Department Total 6,200 3,100 10,125 4,050 Hours required for production: Bird house Bird Feeder Total Hourly rate Total direct labor cost 16,325 7,150 18 NS 12 85,800 379,650 5. Prepare a factory overhead cost budget for January. 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 40,000 20,000 10,000 Insurance and property tax 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. 35,000 Birding Homes & Feeders Inc. Cost of Goods Sold Budget For the Month Ending January 31 Finished goods inventory towary 1 Work in process inventory, January 1 9,000 Direct materials: Direct materials inventory, January 2,300 Direct materials purchases 36,115 Cost of direct materials available for use 35 88,415 Direct materials inventory, January 31 2,250 Cost of direct materials placed in production $86,165 Direct labor 343,650 Factory overhead 75,000 Total manufacturing costs 504,815 Total work in process during period 5$ 513,815 Work in process inventory, January -10,500 Cost of goods manufactured Cost of finished goods available for sale Iniche day 11 503,315 55 538,15 En Cost of finished goods available for sale Finished goods invertory, January 31 Cost of goods sold 35 538,315 -46,500 58 491,615 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 Swapens 1$ 125,000 Advertising expense 30,000 Travel expen 25,000 Total selling expenses Administrative expenses Orice salaries expense 40,000 Depreciation expense office equipment 4,000 Otice supples expense 2,500 Miscellaneous administrative expense 3,500 230,000 Total administrative expenses 5,000 Total operating expenses 5$ 280,000 Total operating expenses 5$ 280,000 8. Prepare a budgeted income statement for January. In the Other revenue and expense section, indicate expenses as negative amounts, 975,000 491,615 483,185 Birding Homes & Feeders Inc. Budgeted Income Statement For the Month Ending January 21 Revenue from sales Cost of goods sold Gross pront Operating expenses Selling expenses 230,000 Administrative cubenses 50,000 Total operating expenses Operating income Other revenue and expense: Interest reverse 4,540 Interest expense 3,000 Income before income tax Income tax expense 280,000 203,185 1,540 201,645 50,411 Net income 5$ 151,234