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 ft Bird house....... 1,000 units at $15 per unit Plastic.. 1,000 lbs. 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 per ft. Plastic........ $0.80 per . f. Direct labor requirements: Bird house: Fabrication Department . 0.40 hr. at $18 per hr. Assembly Department. 0.20 hr. at $12 per he Bird feeder: Fabrication Department 0.25 hr. at $18 per hr. Assembly Department. 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- 4.000 Travel expense- 25,000 Office supplies expense 2.500 Miscellaneous administrative exp 3.500 i. Estimated other revenue and expense for January: Interest revenue $4540 Interest exper 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. 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