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 525 per unit Bird feeder.. -... 40,000 units at $15 per unit b. Estimated inventories at January 1: Direct materials: Finished products: Wood . .....". 600 FL Bird house ..... .. 1,000 units at $15 per unit Plastic. 1,000 ba Bird feeder.. 2.500 units at $8 per unit c. Desired inventories at January 31: Direct materials Finished products: Wood ......." 500 ft. 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 perft. Plastic .......... $0.80 per lb. 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 Departme 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 Depre 4,000 Travel expense- 25,000 Office supplies expense 2 500 ministrative expense 3.500 i. Estimated other revenue and expense for January: Interest revenue $4540 Interest er 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. . Prepare a factory overhead cost budget for January. 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. 7. Prepare a selling and administrative expenses budget for January. 8. Prepare a budgeted income statement for January