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1. PR21-03A Budgeted Income Statement and Supporting Budgets The budget director of Feathered Friends Inc, with the assistance of the controler, 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 Bird house 3,200 units at $50 per unit Bird feeder 3,000 units at $70 per unit b Estimated inventories at December 1: Direct materials 200 240 bs Wood Plastic Finished products Bird house 320 units at $27 per unt Bird feeder Desired inventones at December 31 270 unts at 540 per unit Direct materials: Wood 220 pastic 200 s Finished products Bird house 290 units at $27 per unit Bird feeder 250 units at 141 per unit d. Direct materials used in production: in manufacture of bird House Weod 0.80 t. per unit of preduct Plastic 0.50 . per unit of product in manufacture of Bird Feeder: Wood 1.20 . per unit of preduct Plastic 0.75 ib. per unit of product Aeticpated cost of purchase and beginning and ending inventory of direct materials $7.00 per Pantic $1.00 per t Direct labor requlrements Bird House Fabrication Department 0.20 hr at $36 per he Assembly Depament 0.30 h at $12 per hr. nd Foder Bird Feeder: 0.40 hr. at $16 per hr. Fabrication Department 0.35 hr. at $12 per hr. Assembly Department g. Estimated factory overhead costs for December: Indirect factory wages $75,000 Depreciation of plant and equipment 23,000 Power and light 6,000 5,000 Insurance and property tax h. Estimated operating expenses for December: Sales salaries expense $70,000 Advertising expense 18,000 Office salaries expense 21,000 600 Depreciation expense-office equipment Telephone expense-selling 550 250 Telephone expense-administrative Travel expense-selling 4,000 Office supplies expense 200 400 Miscellaneous administrative expense I. Estimated other income and expense for December: $200 Interest revenue Interest expense 122 j. Estimated tax rate: 30% 1. Prepare a sales budget for December Feathered Friends Inc. Sales Budget For the Month Ending December 31 Unit Selling Unit Sales Total Sales Volume Price 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 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 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 Total Plastic 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 Assembly Department Total Department Hours required for production: Bird house Bird feeder Total Hourly rate Total direct labor cost s 5. Prepare a factory overhead cost budget for December Feathered Priends Ine Prepare a factory overhead cost budget for December Feathered Friends Inc. Factory Overhead Coat Budget Fer the Hanth Ending December 31 Total factory overhead cost Prepare a cost of goods sold budget fer becember Work in process at the beginning of December is esmated to be $29,000, and work in grocess at the end of Decembersmated to be $35,400 For those beses in which vou must enter suberacted or negative umbers VM minuS sign Feathered Friends Inc Cest of Geods Sold Budget For the Hanth Ending December 31 iDirect maerals Cost of direct manerials avalable for use Cost of direct maerials paced in production Ttal manacturing cos Tutal wrk in rocess durng pened Cest of goods manuactured lCont of mhed gids aslable or sae Cat of geeds soid Prepare a selling and administrative expenses budget for December Feathered Friends Inc. Selling and Administrative Expenses Budget For the Month Ending December 31 elling expenses: S$ Total selling expenses S$ Administrative expenses: Total administrative expenses Total operating expenses 8. Prepare a budgeted income statement for December. In the Other revenje and expense section, indicate expenses as negative amounts. Feathered Friends Inc. Budgeted Income Statement For the Month Ending December 31 Operating expenses: Total operating expenses Income from operations s$ Other revernue and expense: nanlc Dm otal selling expenses strative expenses: $ $ $$ Total administrative expenses al operating expenses $ $ Prepare a budgeted income statement for December. In the Other revenue and expense section, indicate expenses as negative amounts. Feathered Friends Inc. Budgeted Income Statement For the Month Ending December 31 $$ s$ Accounting numeric field Operating expenses: $$ Total operating expenses Income from operations S$ Other revenue and expense: s$ Income before income tax $$ Net income S$ 1. PR21-03A Budgeted Income Statement and Supporting Budgets The budget director of Feathered Friends Inc, with the assistance of the controler, 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 Bird house 3,200 units at $50 per unit Bird feeder 3,000 units at $70 per unit b Estimated inventories at December 1: Direct materials 200 240 bs Wood Plastic Finished products Bird house 320 units at $27 per unt Bird feeder Desired inventones at December 31 270 unts at 540 per unit Direct materials: Wood 220 pastic 200 s Finished products Bird house 290 units at $27 per unit Bird feeder 250 units at 141 per unit d. Direct materials used in production: in manufacture of bird House Weod 0.80 t. per unit of preduct Plastic 0.50 . per unit of product in manufacture of Bird Feeder: Wood 1.20 . per unit of preduct Plastic 0.75 ib. per unit of product Aeticpated cost of purchase and beginning and ending inventory of direct materials $7.00 per Pantic $1.00 per t Direct labor requlrements Bird House Fabrication Department 0.20 hr at $36 per he Assembly Depament 0.30 h at $12 per hr. nd Foder Bird Feeder: 0.40 hr. at $16 per hr. Fabrication Department 0.35 hr. at $12 per hr. Assembly Department g. Estimated factory overhead costs for December: Indirect factory wages $75,000 Depreciation of plant and equipment 23,000 Power and light 6,000 5,000 Insurance and property tax h. Estimated operating expenses for December: Sales salaries expense $70,000 Advertising expense 18,000 Office salaries expense 21,000 600 Depreciation expense-office equipment Telephone expense-selling 550 250 Telephone expense-administrative Travel expense-selling 4,000 Office supplies expense 200 400 Miscellaneous administrative expense I. Estimated other income and expense for December: $200 Interest revenue Interest expense 122 j. Estimated tax rate: 30% 1. Prepare a sales budget for December Feathered Friends Inc. Sales Budget For the Month Ending December 31 Unit Selling Unit Sales Total Sales Volume Price 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 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 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 Total Plastic 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 Assembly Department Total Department Hours required for production: Bird house Bird feeder Total Hourly rate Total direct labor cost s 5. Prepare a factory overhead cost budget for December Feathered Priends Ine Prepare a factory overhead cost budget for December Feathered Friends Inc. Factory Overhead Coat Budget Fer the Hanth Ending December 31 Total factory overhead cost Prepare a cost of goods sold budget fer becember Work in process at the beginning of December is esmated to be $29,000, and work in grocess at the end of Decembersmated to be $35,400 For those beses in which vou must enter suberacted or negative umbers VM minuS sign Feathered Friends Inc Cest of Geods Sold Budget For the Hanth Ending December 31 iDirect maerals Cost of direct manerials avalable for use Cost of direct maerials paced in production Ttal manacturing cos Tutal wrk in rocess durng pened Cest of goods manuactured lCont of mhed gids aslable or sae Cat of geeds soid Prepare a selling and administrative expenses budget for December Feathered Friends Inc. Selling and Administrative Expenses Budget For the Month Ending December 31 elling expenses: S$ Total selling expenses S$ Administrative expenses: Total administrative expenses Total operating expenses 8. Prepare a budgeted income statement for December. In the Other revenje and expense section, indicate expenses as negative amounts. Feathered Friends Inc. Budgeted Income Statement For the Month Ending December 31 Operating expenses: Total operating expenses Income from operations s$ Other revernue and expense: nanlc Dm otal selling expenses strative expenses: $ $ $$ Total administrative expenses al operating expenses $ $ Prepare a budgeted income statement for December. In the Other revenue and expense section, indicate expenses as negative amounts. Feathered Friends Inc. Budgeted Income Statement For the Month Ending December 31 $$ s$ Accounting numeric field Operating expenses: $$ Total operating expenses Income from operations S$ Other revenue and expense: s$ Income before income tax $$ Net income S$
