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- on 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 1066 Chapter 22 Budgeting b. Estimated inventories at December 1: Direct materials: Finished products: Bird houte.. 320 units at $27 per unit Wood........ 200 L Bird feeder... 270 units at $40 per unit Plastic... C Desired Inventories at December 31: Direct materials: Finished products: Wood. 290 units at $27 per unit 220 ft. Bird house....... Bird feeder....... 250 units at $41 per unit Plastic ........ 200 lbs. 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 ... ..... 1.20 ft per unit of product Plastic............ 0.50 lb, per unit of product Plastic...... 0.75 lb, per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials Wood ........................ 57.00 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 512 per her Bird Feeder: Fabrication Department... 0.40 hr at $16 per hr. Assembly Department 0.35 hr at $12 per hr. 8. 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 Telephone expense-selling Telephone expense administrative Travel expenseselling 4,000 Office supplies expense 200 Miscellaneous administrative expense 400 i Estimated other income and expense for December Interest revenue $200 Interest expense 600 550 250 122 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 beginning of December is estimated to be $29,000, and work in process at the end of December is estimated to be $35.400 7. Prepare a selling and administrative expenses budget for December 8. Prepare a budgeted income statement for December