PR 22-3A Budgeted income statement and supporting budgets Obj. 4 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 Finished products Wood ......." 600 it Bird house ....... 1,000 units at $15 per unit Plastic.. 1,000 x Bird feeder... 2.500 units at $8 per unit c. Desired inventories at January 31: Direct materials Finished products Wood ....... 500 It Bird house....... 1,500 units at $15 per unit Plastic.. 1,250 ba Bird feeder... 3,000 units at $8 per unit d. Direct materials used in production: In manufacture of bird house: In manufacture of bird feeder: Wood ...... ... 0.80 ft. per unit of product Wood . 0.20 ft. per unit of product Plastic... .. 0.10 lb. per unit of product Plastic... 1.00 lb. 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 b. f. Direct labor requirements: Bird house Fabrication Department 0.40 hr. at $18 per hr. Assembly Department. 0.20 hr. at $12 per hr. Bird feeder: Fabrication Department 0.25 hr at $18 per hr Assembly Departm 0.10 hr. at $12 per he g. Estimated factory overhead costs for January: Indirect factory wages $40,000 Power and light $10,000 Depreciation of plant and equipment 20,000 Insurance and property tax 5,000 h. Estimated operating expenses for January: Sales salaries expense $125,000 Advertising expense 80,000 Office salaries expense 40,000 Depreciation expense- -office equ 4,000 Travel expense-selling 25,000 Office supplies expense 2 500 Miscellaneous administrative 3.500 i. Estimated other revenue and expense for January: Interest revenue 54540 Interest expense 3.000 Estimated tax rate: 25% Instructions 1. Prepare a sales budget for January 2. Prepare a production budget for January 3. Prepare a direct materials purchases budget for January. 4. Prepare a direct labor cost budget for January. 5. Prepare a factory overhead cost budget for January. 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. 7. Prepare a selling and administrative expenses budget for January. 8. Prepare a budgeted income statement for January