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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
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:
- Estimated sales for January:
Birdhouse 7,500 units at $66 per unit Bird feeder 5,000 units at $82 per unit - Estimated inventories at January 1:
Direct materials: Wood 198 ft. Plastic 420 lb. Finished products: Birdhouse 500 units at $28 per unit Bird feeder 210 units at $40 per unit - Desired inventories at January 31:
Direct materials: Wood 220 ft. Plastic 340 lb. Finished products: Birdhouse 400 units at $28 per unit Bird feeder 250 units at $40 per unit - Direct materials used in production:
In manufacture of BirdHouse: Wood 0.80 ft. per unit of product Plastic 0.50 lb. per unit of product In manufacture of Bird Feeder: Wood 1.20 ft. per unit of product Plastic 0.75 lb. per unit of product - Anticipated cost of purchases and beginning and ending inventory of direct materials:
Wood $9.00 per ft. Plastic $1.40 per lb. - Direct labor requirements:
Birdhouse: Fabrication Department 0.25 hr. at $20 per hr. Assembly Department 0.30 hr. at $15 per hr. Bird Feeder: Fabrication Department 0.40 hr. at $20 per hr. Assembly Department 0.35 hr. at $15 per hr. - Estimated factory overhead costs for January:
Indirect factory wages $92,000 Depreciation of plant and equipment 34,000 Power and light 10,100 Insurance and property tax 2,800 - Estimated operating expenses for January:
Sales salaries expense $85,100 Advertising expense 17,600 Office salaries expense 19,200 Depreciation expenseoffice equipment 1,100 Telephone expenseselling 1,000 Telephone expenseadministrative 400 Travel expenseselling 3,800 Office supplies expense 350 Miscellaneous administrative expense 250 - Estimated other income and expense for January:
Interest revenue $450 Interest expense 294 - Estimated tax rate: 25%
7. Prepare a selling and administrative expenses budget for January.
Birds and Beyond Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 | |||
Selling expenses: | |||
Sales salaries expense | $fill in the blank 76 | ||
Advertising expense | fill in the blank 77 | ||
Telephone expenseselling | fill in the blank 78 | ||
Travel expenseselling | fill in the blank 79 | ||
Total selling expenses | $fill in the blank 80 | ||
Administrative expenses: | |||
Office salaries expense | $fill in the blank 81 | ||
Depreciation expenseoffice equipment | fill in the blank 82 | ||
Telephone expenseadministrative | fill in the blank 83 | ||
Office supplies expense | fill in the blank 84 | ||
Miscellaneous administrative expense | fill in the blank 85 | ||
Total administrative expenses | fill in the blank 86 | ||
Total operating expenses | $fill in the blank 87 |
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