The budget director of Birding Homes 8: 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: 15,000 units at Bird house 7 $25 per unit _ 40,000 units at Bird feeder , $15 per unit b. Estimated inventories at January 1: Direct materials: Wood 600 Ft. Plastic 1,000 lbs. Finished products: 7 1,000 units at Bird house $15 per unit 7 2,500 units at $8 Bird Feeder , per unit c. Desired inventories at January 31: Direct materials: Wood 500 ft. Plastic 1,250 lbs. Finished products: 1,500 units at Bird house , , ' Bird Feeder: 0.25 hr. at $18 Fabrication Department per hr. 0.10 hr. at $12 Assembly Department per hr. 9. Estimated factory overhead costs for January: Indirect factory wages $40,000 Depreciation of plant and equipment 20,000 Power and light 10,000 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-office equipment 4,000 Travel expense-selling 25,000 Office supplies expense 2,500 Miscellaneous administrative expense 3,500 i. Estimated other revenue and expense for January: Interest revenue $4,540 Interest expense 3,000 j. Estimated tax rate: 25%m Bird house ' , A $15 per unit 3,000 units at $8 per unit Bi rd feeder d. Direct materials used in production: In manufacture of Bird House: 0.80 ft. per unit of product We ocl 0.10 lb. per unit of product Plastic In manufacture of Bird Feeder: 0.20 ft. per unit of product We od 1.00 lb. per unit of product Plastic e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $2.50 per ft. Plastic $0.80 per lb. f. Direct labor requirements: Bird House: 0.40 hr. at $18 Fabrication Department per hr. 0.20 hr. at $12 Assembly Department v ___ L 1. Prepare a sales budget for January. Birding Homes & Feeders Inc. Sales Budget For the Month Ending January 31 Unit Sales Unit Selling Total Sales Volume Price Bird house 15,000 $ $ 25 $ $ 375,000 Bird feeder 40,000 15 600,000 Total revenue from sales $ $ 975,000 2. Prepare a production budget for January. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Birding Homes & Feeders Inc. Production Budget For the Month Ending January 31 Units Bird House Bird Feeder Expected units to be sold 15,000 40,000 Desired inventory, January 31 1,500 3,000 Total units available 16 500 43 nnnDesired inventory, January 21 Total units available 16,500 43,000 Estimated inventory, January 1 1,000 2,500 Total units to be produced 15,500 40,500 3. Prepare a direct materials purchases budget for January. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Birding Homes & Feeders Inc. Direct Materials Purchases Budget For the Month Ending January 31 Wood Plastic Total Required units for production: Bird house 12,400 1,550 Bird feeder 8,100 40,500 Desired units of inventory, January 31 500 1,250 Total units available 21,000 43,300 Estimated units of inventory, January 1 600 1,000 Total units to be purchased 20,400 42,300 Unit price 2.50 S x $ 0.80 Total direct materials to be purchased $ 51,000 S 33,840 $ 84,8404. Prepare a direct labor cost budget for January. Birding Homes & Feeders Inc. Direct Labor Cost Budget For the Month Ending January 31 Fabrication Assembly Department Total Department Hours required for production: Bird house 6,200 3,100 Bird feeder 10,125 4,050 Total 16,325 7,150 Hourly rate S 18 x9 12 Total direct labor cost $ 293,850 $ 85,800 $ $ 379,650 5. Prepare a factory overhead cost budget for January. Birding Homes & Feeders Inc. Factory Overhead Cost Budget For the Month Ending January 315. 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Birding Homes & Feeders Inc. Cost of Goods Sold Budget For the Month Ending January 31 $ $ Direct materials: $ $ Cost of direct materials available for use $ $ Cost of direct materials placed in production $ $ Total manufacturing costs Total work in process during period Cost of goods manufacturedCost of goods manufactured Cost of finished goods available for sale Cost of goods sold 7. Prepare a selling and administrative expenses budget for January. Birding Homes & Feeders Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 Selling expenses: $ $ Total selling expenses to Administrative expenses:8. Prepare a budgeted income statement for January. In the Other revenue and expense section, indicate expenses as negative amounts. 7. Prepare a selling and administrative expenses budget for January. ? Birding Homes & Feeders Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 Selling expenses: $ $ Total selling expenses Administrative expenses: $ $ Total administrative expenses Total operating expenses