Chapter 21 Final Problem

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:There are a total of 8 different statements so please answer all of them ASAP!

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: a. Estimated sales for December: Bird house..... Bird feeder. .. . .. .. .. .. . .. .. 3,200 units at $50 per unit . .. .. . .. .. 3,000 units at $70 per unit .. . .. . . . . .. . .. . . .. .. . b. Estimated inventories at December 1: Direct materials: Finished products: Wood Plastic... 200 ft. 240 lbs. Bird house.......320 units at $27 per unit Bird feeder 270 units at $40 per unit c. Desired inventories at December 31: Direct materials: Finished products: Wood .._ _....220 ft. Plastic.._ _. 200 lbs. d. Direct materials used in production: Bird house....... 290 units at $27 per unit Bird feeder... .. 250 units at $41 per unit In manufacture of Bird House: In manufacture of Bird Feeder Wood Plastic..._.. 0.80 ft. per unit of product 0.50 lb. per unit of product Wood Plastic 1.20 ft. per unit of product 0.75 lb. per unit of product 0.50 ...__. 0 e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $7.00 per ft. Plastic $1.00 perb f. Direct labor requirements: Bird House: 0.20 hr. at $16 per hr. Bird Feeder: 0.40 hr.at $16 per hr. 0.35 hr.at $12 per hr