PR 21-3 A Budgeted income statement and supportibg budgets

1094 Chapter 21 Instructions 1. Prepare a sales budget for July 2. Prepare a production budget for July Prepare a direct materials purchases budget for July Prepare a direct labor cost budget for July use in developing 320 units at $27 per un 270 units at $40 per un 290 units at $27 per unit 250 units at $41 per unit Wood. PR 21-34 Budgeted income statement and supporting budgets 4. Total direct labor abor The budget director of The budget director of Feathered Friends Inc. with the assistance of the son cost in Fabrication on producto production manager and sales manager, has gathered the following data for e stament for the t A Estimated sales for December 200 units at 550 per unit 3.000 units at $70 per unit Bird house. Bird feeder. B. Estimated Inventories at December 1: Finished products: Direct materials Bird house.** Wood .. 200 Ft Bird feeder.. Plastic... 240 lbs. C Desired Inventories at December 31: Finished products Direct materials: Bird house..... Wood.... 220 ft. Bird feeder.. Plastic........ 200 lbs. D. Direct materials used in production: In manufacture of Bird House: In manufacture of Bird Feeder: Wood . 1.20 ft per unit of product .....0.80ft per unit of product . Plastic.. 0.75 lb. per unit of product 0.75 lb, per unit of Plastic ............ 0.50 lb. per unit of product E Anticipated cost of purchases and beginning and ending inventory of direct materiale Wood .............. $7.00 per ft. Plastic..........$1.00 per lb. F. Direct labor requirements: Bird House: Fabrication Department.... 0.20 hr. at $16 per hr. Assembly Department...... 0.30 hr. at $12 per hr. Bird Feeder: Fabrication Department .... 0.40 hr. at $16 per hr. Assembly Department.... 0.35 hr. at $12 per hit G. Estimated factory overhead costs for December: Indirect factory wages $75,000 Power and light $6,000 Depreciation of plant and equipment 23,000 Insurance and property tax 5,000 H. Estimated operating expenses for December: Sales salaries expense $70,000 Advertising expense 18,000 Office salaries expense 21,000 Depreciation expense-office equipment 600 Telephone expense-selling 550 Telephone expense-administrative Travel expense-selling 4,000 Office supplies expense 200 Miscellaneous administrative expense 400 250 1095 Chapter 21 Budgeting I Estimated other income and expense for December: Interest revenue $200 Interest expense 122 J. Estimated tax rate: 30% Instructions 1. Prepare a sales budget for December 2. Prepare a production budget for December 3. Prepare a direct materials purchases budget for December 4. Prepare a direct labor cost budget for December 5. Prepare a factory overhead cost budget for December 6. Prepare a cost of goods sold budget for December work in process at the beginning of December is estimated to be $29.000, and work in process at the end of December 15 estimated to be $35,400. 7. Prepare a selling and administrative expenses budget for December. 8. Prepare a budgeted income statement for December, member 58,500 PR 21-4A Cash budget Obj. 5 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 .. $250,000 $300,000 $315,000 Manufacturing costs..... 150,000 180,000 185,000 Selling and administrative expenses.. 42,000 48,000 51,000 200,000 Capital expenditures ... EMPLATE 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 rep resent $50,000 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, 80% 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 $40,000, marketable securities of $75.000 and accounts receivable of $300,000 300,000 from July Sales and $240,000 from August sales) Sales on account for July and August were $200,000 and $240,000, respectively. Current liabilities of September 1 include $40,000 of accounts payable incurred in August for manufacturing un expenses are paid in cash in the period they are incurred