PR22-3A Budgeted Income Statement and Supporting Budgets.

I ONLY NEED HELP WITH QUESTIONS 6 AND 8. BUT I AM INCLUDING ALL THE INFORMATION THAT I HAVE.

The budget director of Birds and Beyond, 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 2021:

1. Estimated sales for January:

Birdhouse 7.500 units at $66 per unit

Bird feeder 5,000 units at $82 per unit

2. Estimated inventories at January 1:

Direct Materials: Finished Products:

Wood: 198 ft. Birdhouse: 500 units at $28 per unit.

Plastic: 420 lbs. Bird feeder: 210 units at $40 per unit.

3. Desired inventories at January 31:

Direct Materials: Finished Products:

Wood: 220 ft. Birdhouse: 400 units at $28 per unit.

Plastic: 340 lbs. Bird feeder: 250 units at $40 per unit.

4. Direct materials used in production:

In Mfg. of the Birdhouse: In Mfg. of the Bird Feeder:

Wood: 0.80 ft. per unit. 1.20 ft. per unit.

Plastic: 0.50 lb. per unit. 0.75 lb. per unit.

5. Anticipated cost of purchases and beginning and ending inventory of direct materials:

Wood: $9 per ft. Plastic: $1.40 per lb.

6. Direct labor requirements:

Birdhouse:

Fabrication Department: 0.25 hr. at $20 per hour.

Assembly Department: 0.30 hr. at $15 per hour.

Bird Feeder:

Fabrication Department: 0.40 hr. at $20 per hour.

Assembly Department: 0.35 hr. at $15 per hour.

7. Estimated factory overhead costs for January:

Indirect Factory Wages: $92,000 Power and Light: $10,100

Depreciation-Plant and Equip.: $34,000 Insurance and Property Tax: $2,800

8. Estimated operating expenses for January:

Sales Salaries Expense: $85,100

Advertising Expense: 17,600

Office Salaries Expense: 19,200

Depreciation Expense-Office Equipment 1,100

Telephone Expense-Selling: 1,000

Telephone Expense-Administrative: 400

Travel Expense-Selling: 3,800

Office Supplies Expense: 350

Miscellaneous Administrative Expense: 250

1. Estimated other income and expense for January:

Interest Revenue: $450 Interest Expense: $294

10. 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 $33,600, and work in process at the end of January is estimated to be $41,200.
7. Prepare a selling and administrative expenses budget for January.
8. 

PROBLEM 22-3A Question 1 Birds and Beyond, Inc. Sales Budget For the Month Ending January 31, 2021 Bird house Bird feeder Total revenue from sales Unit Sales Volume Unit Selling Price Total Sales 7,500 $66 $495,000 5,000 $82 410,000 $905.000 Question 2 Birds and Beyond, Inc. Production Budget For the Month Ending January 31, 2021 Expected units to be sold Plus desired inventory, January 31, 2021 Total Less estimated inventory, January 1, 2021 Total units to be produced Bird House 7,500 400 7,900 500 7400 Bird Feeder 5,000 250 5,250 210 5.040 Question 3 Birds and Beyond, Inc. Direct Materials Purchases Budget For the Month Ending Jan. 31, 2021 Wood Plastic Total 9,620 9,828 Required units for production: Bird house Bird feeder Plus desired units of inventory, 1/31/2021 Total Less estimated units of inventory, 1/1/2021 Total units to be purchased Unit price Total direct materials to be purchased 5,920 6,048 220 12,188 198 11,990 $9.00 $107,910 3,700 3,780 340 7,820 420 7,400 $1.40 $10,360 $118.270 Question 4 Birds and Beyond, Inc. Direct Labor Cost Budget For the Month Ending January 31, 2021 Fabrication Dept. Assembly Dept. Total Hours required for production: Bird house Bird feeder Total Hours Required Hourly rate Total direct labor cost 1,850 2.016 3,866 $20 $77,320 2,220 1,764 3,984 $15 $59,760 $137.080 Birds and Beyond, Inc. Factory Overhead Cost Budget For the Month Ending January 31, 2021 Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax Total $92,000 34,000 10,100 2.800 $138.900 118,270 Question 6 Birds and Beyond, Inc. Cost of Goods Sold Budget For the Month Ending January 31, 2021 Finished goods inventory, January 1, 2021 Work in process inventory, January 1, 2021 Direct materials: Direct materials inventory, January 1, 2021 Direct materials purchases Cost of direct materials available for use Less direct materials inventory, Jan. 31, 2021 Cost of direct materials placed in production Direct labor Factory overhead Total manufacturing costs Total work in process during period Less work in process, January 31, 2021 Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, Jan. 31, 2021 Cost of goods sold 137,080 138.900 $85,100 17,600 1,000 3,800 Question 7 Birds and Beyond, Inc. Selling and Administrative Expenses Budget For the Month Ending January 31, 2021 Selling expenses: Sales salaries expense Advertising expense Telephone expense-selling Travel expense-selling Total selling expenses Administrative expenses: Office salaries expense Depreciation expense-office equipment Telephone expense-administrative Office supplies expense Miscellaneous administrative expense Total administrative expenses Total operating expenses $107,500 $19,200 1,100 400 350 250 21.300 $128.800 Question 8 Birds and Beyond, Inc. Budgeted Income Statement For the Month Ending January 31, 2021 Revenue from sales Cost of goods sold Gross profit Operating expenses: Selling expenses Administrative expenses Total operating expenses Income from operations Other income: Interest revenue Other expenses: Interest expense Income before income tax Income tax expense (25% rate) Net income $107,500 21,300 128,800 PROBLEM 22-3A Question 1 Birds and Beyond, Inc. Sales Budget For the Month Ending January 31, 2021 Bird house Bird feeder Total revenue from sales Unit Sales Volume Unit Selling Price Total Sales 7,500 $66 $495,000 5,000 $82 410,000 $905.000 Question 2 Birds and Beyond, Inc. Production Budget For the Month Ending January 31, 2021 Expected units to be sold Plus desired inventory, January 31, 2021 Total Less estimated inventory, January 1, 2021 Total units to be produced Bird House 7,500 400 7,900 500 7400 Bird Feeder 5,000 250 5,250 210 5.040 Question 3 Birds and Beyond, Inc. Direct Materials Purchases Budget For the Month Ending Jan. 31, 2021 Wood Plastic Total 9,620 9,828 Required units for production: Bird house Bird feeder Plus desired units of inventory, 1/31/2021 Total Less estimated units of inventory, 1/1/2021 Total units to be purchased Unit price Total direct materials to be purchased 5,920 6,048 220 12,188 198 11,990 $9.00 $107,910 3,700 3,780 340 7,820 420 7,400 $1.40 $10,360 $118.270 Question 4 Birds and Beyond, Inc. Direct Labor Cost Budget For the Month Ending January 31, 2021 Fabrication Dept. Assembly Dept. Total Hours required for production: Bird house Bird feeder Total Hours Required Hourly rate Total direct labor cost 1,850 2.016 3,866 $20 $77,320 2,220 1,764 3,984 $15 $59,760 $137.080 Birds and Beyond, Inc. Factory Overhead Cost Budget For the Month Ending January 31, 2021 Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax Total $92,000 34,000 10,100 2.800 $138.900 118,270 Question 6 Birds and Beyond, Inc. Cost of Goods Sold Budget For the Month Ending January 31, 2021 Finished goods inventory, January 1, 2021 Work in process inventory, January 1, 2021 Direct materials: Direct materials inventory, January 1, 2021 Direct materials purchases Cost of direct materials available for use Less direct materials inventory, Jan. 31, 2021 Cost of direct materials placed in production Direct labor Factory overhead Total manufacturing costs Total work in process during period Less work in process, January 31, 2021 Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, Jan. 31, 2021 Cost of goods sold 137,080 138.900 $85,100 17,600 1,000 3,800 Question 7 Birds and Beyond, Inc. Selling and Administrative Expenses Budget For the Month Ending January 31, 2021 Selling expenses: Sales salaries expense Advertising expense Telephone expense-selling Travel expense-selling Total selling expenses Administrative expenses: Office salaries expense Depreciation expense-office equipment Telephone expense-administrative Office supplies expense Miscellaneous administrative expense Total administrative expenses Total operating expenses $107,500 $19,200 1,100 400 350 250 21.300 $128.800 Question 8 Birds and Beyond, Inc. Budgeted Income Statement For the Month Ending January 31, 2021 Revenue from sales Cost of goods sold Gross profit Operating expenses: Selling expenses Administrative expenses Total operating expenses Income from operations Other income: Interest revenue Other expenses: Interest expense Income before income tax Income tax expense (25% rate) Net income $107,500 21,300 128,800