eBook 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: a. Estimated sales for December: 3,200 units at Bird house 550 per unit Bird feeder 3,000 units at $70 per unit b. Estimated Inventories at December 1: Direct materials: Wood 200 ft Plastic 240 lbs. Finished products Bird house 320 units at $27 per unit 270 units at $40 per unit Bird feeder C Desired inventaries at December 31 Direct materials: Wood 220 Ft Plastic 200 lbs. Finished products: 290 units at $27 Bird house Finished products: 290 units at $27 Bird house per unit 250 units at $41 Bird feeder per unit d. Direct materials used in production: In manufacture of Bird House: 0.80 ft. per unit Wood of product 0.50 lb. per unit Plastic of product In manufacture of Bird Feeder: 1.20 ft. per unit Wood of product 0.75 lb. per unit Plastic of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $7.00 per ft. Plastic $1.00 per lb. f. Direct labor requirements: Bird House: 0.20 hr. at $16 Fabrication Department per hr. 0.30 hr. at $12 Assembly Department per hr eBook Bird Feeder: Fabrication Department 0.40 hr. at $16 per hr. 0.35 hr, at $12 Assembly Department per hr. $75,000 23,000 6,000 g. Estimated factory overhead costs for December: Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax h. Estimated operating expenses for December: Sales salaries expense Advertising expense Office salaries expense 5,000 $70,000 18,000 21,000 600 550 Depreciation expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense--selling 250 4,000 200 Office supplies expense Miscellaneous administrative expense i. Estimated other income and expense for December: Interest revenue 400 $200 Interest expense 122 1. Estimated tax rate: 30% Required: 1. Prepare a sales budget for December Feathered Friends Inc. Sales Budget For the Month Ending December 31 Unit Sales Unit Selling Volume Price Total Sales Bird house Bird feeder Total revenue from sales 2. Prepare a production budget for December. For those boxes in which you must enter subtracted or negative numbers use a minus sign Feathered Friends Inc. Production Budget For the Month Ending December 31 Units Bird House Bird Feeder eBook 2. Prepare a production budget for December. For those boxes in which you must enter subtracted or negative numbers use a minus sign Feathered Friends Inc. Production Budget For the Month Ending December 31 Units Bird House Bird Feeder 3. Prepare a direct materials purchases budget for December. For those boxes in which you must enter subtracted or negative numbers use a minus sign Feathered Friends Inc. Direct Materials Purchases Budget For the Month Ending December 31 Wood Plastic Total Required units for production: Bird house Bird Feeder 3. Prepare a direct materials purchases budget for December. For those boxes in which you must enter subtracted or negative numbers use a minus sign Feathered Friends Inc. Direct Materials Purchases Budget For the Month Ending December 31 Wood Plastic Total Required units for production: Bird house Bird Feeder Desired units of Inventory, December 31 Total units available Estimated units of inventory, December 1 Total units to be purchased Unit price Total direct materials to be purchased $ $ 4. Prepare a direct labor cost budget for December Feathered Friends Inc. Direct Labor Cost Budget For the Month Ending December 31 Fabrication eBook 4. Prepare a direct labor cost budget for December. Feathered Friends Inc. Direct Labor Cost Budget For the Month Ending December 31 Fabrication Department Assembly Department Total Hours required for production: Bird house Bird feeder Total Hourly rate $ $ Total direct labor cost $ S 5 5. Prepare a factory overhead cost budget for December. Feathered Friends Inc. Factory Overhead Cost Budget For the Month Ending December 31 $ 5. Prepare a factory overhead cost budget for December Feathered Friends Ine. Factory Overhead Cost Budget For the Month Ending December 31 Total factory overhead cost 6. Prepare a cost of goods sold budget for December. Work in process at the beginning of December is estimated to be 529,000, and work in process at the end of December estimated to be 535,400. For those boxes in which you must enter subtracted or negative numbers use a minus sign Feathered Friends Inc. Cost of Goods Sold Budget For the Month Ending December 31 Direct materials: eBook Feathered Friends Inc. Cost of Goods Sold Budget For the Month Ending December 31 Direct materials: $ Cost of direct materials available for use A Cost of direct materials placed in production $ Total manufacturing costs Total work in process during period $ Cost of goods manufactured Cost of finished goods available for sale S Cost of goods sold S 7. Prepare a selling and administrative expenses budget for December. Feathered Friends Inc. Selling and Administrative Expenses Budget For the Month Ending December 31 Selling expenses: $ $ Total selling expenses $ $ Administrative expenses: $ $ Total administrative expenses Total operating expenses $ $ 8 Pronare a hudneted income statement for December In the other revenue and avr 8. Prepare a budgeted income statement for December. In the other revenue and expense section, indicate expenses as negative amounts Feathered Friends Inc. Budgeted Income Statement For the Month Ending December 31 55 Operating expenses Total operating expenses Income from operations Other revenue and expense: $$ $$ Income before income tax SS Net Income Cash Budget The controller of Bridgeport Housewares Inc. Instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $137,000 $166,000 $222,000 Manufacturing costs 58,000 71,000 80,000 Selling and administrative 48,000 50,000 84,000 expenses Capital expenditures 53,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, Insurance, and property tax expense represent $6,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December of the remainder of the manufacturing costs, Bo% are expected to be paid in the month in which they are incurred and the balance in the following month Current assets as of September 1 include cash of $52,000, marketable securities of $74,000, and accounts receivable of $153,000 ($120,000 from July sales and $33,000 from August sales). Sales on account for July and August were $110,000 and $120,000, respectively. Current liabilities as of September 1 include $6,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $20,000 will be made in October Bridgeport's regular quarterly dividend of $6,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $51,000. Required: 1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign. Assume 360 days per year for interest calculations. Bridgeport Housewares Inc. Cash Budget For the Three Months Ending November 30 BIL Bridgeport Housewares Inc. Cash Budget For the Three Months Ending November 30 September October Estimated cash receipts from: November $ $ $ Total cash receipts Less estimated cash payments for: $ tA $ Other purposes: QUO QUI OQQOLD) Total cash payments $ $ Cash balance at end of month $ Excess or (deficiency) $ 8 Other purposes Total cash payments Cash balance at end of month Excess or (deficiency) 2. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller? The budget indicates that the minimum cash balance be maintained in November. This situation can be corrected by of the marketable securities, if they are held for such purposes. At the end of September and October, the cash balance will desired balance and/or by the the minimum