PR 22-3A Budgeted income statement and supporting budgets OBJ. 4 The budget director of Feathered Friends Inc., with the assistance of the controller, trea surer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for December 2016: a. Estimated sales for December: Bird house..... Bird feeder.... 3,200 units at $50 per unit 3,000 units at $70 per unit 120 units at 527 per un 270 units 540 per nie 1066 200 units at $27 per unit 250 units at 541 per unit Chapter 22 Buleting b. Estimated inventories at December 1 Finished products Dermata Badhouse Bird feeder.. . Desired inventories at December 31 Finished products Direct material Birdhouse 220 200 lbs Bud feeder. Direct materials used in production In manufacture of Bird Feeder in manufacture of Bird House 0.0t per unit of product Plastic 0.0 b. per unit of product Plastic 0.75 ib. per unit of Anticipated cost of purchases and beginning and ending inventory of die Wood $7.00 per ft. Plastic Direct labor requirements 1.20 ft. per unit of produce Wood.. of direct materials $1.00 per la 0.20 h at $16 per hr 0.30 h. at 512 per hr 0.40 hr. at 516 per hr. 0.35 h. at 512 per hr. 56,000 Bird House Fabrication Department ... Assembly Department... Bird Feeder: Fabrication Department ........ Assembly Department * Estimated factory overhead costs for December Indirect factory wages $75.000 Power and light 23.000 insurance and property tax Depreciation of plant and equipment Estimated operating expenses for December Sales salaries expense $70.000 Advertising expense 18,000 Office salaries expense 21.000 Depreciation expense office equipment Telephone expense-selling Telephone expense-administrative 250 Travel expense-seling Office Supplies expense Miscellaneous administrative expense i Estimated other income and expense for December: Interest revenue Interest expense 550 4,000 200 400 5200 122 1. 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 bed of December is estimated to be $29,000, and work in process at the end of De is estimated to be $35.400 7. Prepare a selling and administrative expenses budget for December. 8. Prepare a budgeted income statement for December at the end of December Direct materials inventory, December 1, 2016 Plastic Tot Direct materials inventory, December 31, 2016 Wood Plast FEATHERED FRIENDS INC. Selling and Administrative Expenses Budget For the Month Ending December 31, 2016 Total selling expenses Administrative expenses Tonaladminative expenses Total operating expenses FEATHERED FRIENDS INC Budgeted Income Statement For the Month Ending December 31, 2016 Revenue from sales Cost of goods sold Gross profe Operating expenses Selling expenses Administrative expenses Total operating expenses Income from operations Other income Interest revenue Other expense income before income tax Income taxe pense Nutcome