Operating expenses: Total operating expenses Operating income Other revenue and expense: Income before income tax Net income 8. Prepare a budgeted income statement for January. In the Other revenue and expense section, indicate expenses as negative amounts. Factory overhead Total manufacturing costs Total work in process during period Work in process inventory, January 31 10,500 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, January 31 Cost of goods sold 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: Total selling expenses 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. 4. Prepare a direct labor cost budget for January. Birding Homes \& Feeders Inc. Direct Labor Cost Budget 5. Prepare a factory overhead cost budget for January. 3. Prepare a direct materials purchases budget for January. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 1. Prepare a sales budget for January. 2. Prepare a production budget for January. For those boxes in which you must enter subtracted or negative numbers use a minus sign. i. Estimated other revenue and expense for January: j. Estimated tax rate: 25% Required: 1. Prepare a sales budget for January. d. Direct materials used in production: In manufacture of Bird House: Wood 0.80ft. per unit of product Plastic 0.10lb. per unit of product In manufacture of Bird Feeder: Wood 0.20ft. per unit of product Plastic 1.00lb. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $2.50 per ft. Plastic $0.80 per lb. f. Direct labor requirements: Bird House: Fabrication Department 0.40hr. at $18 per hr. Assembly Department 0.20hr. at $12 per hr. Bird Feeder: Fabrication Department 0.25hr. at $18 per hr. Assembly Department 0.10hr. at $12 per hr. g. Estimated factory overhead costs for January: Budgeted income statement and supporting budgets 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: Bird house 15,000 units at $25 per unit Bird feeder 40,000 units at $15 per unit b. Estimated inventories at January 1 : Direct materials: Wood 600ft. Plastic 1,000lbs. Finished products: Bird house 1,000 units at $15 per unit Bird feeder 2,500 units at $8 per unit c. Desired inventories at January 31 : Direct materials: Wood 500ft. Plastic 1,250 lbs. Finished products: Bird house 1,500 units at $15 per unit Bird feeder 3,000 units at $8 per unit d. Direct materials used in production
