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:

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:
   Wood	198 ft.
   Plastic	420 lb.
   Finished products:
   Birdhouse	500 units at $28 per unit
   Bird feeder	210 units at $40 per unit

3. 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

4. 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

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

   Wood	$9.00 per ft.
   Plastic	$1.40 per lb.

6. 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.

7. 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

8. 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

9. Estimated other income and expense for January:

   Interest revenue	$450
   Interest expense	294

10. Estimated tax rate: 25%

Cost of Goods Sold Budget For the Month Ending January 31 Finished goods inventory, January 1 Work in process inventory, January 1 33,600 Direct materials: Direct materials inventory, January 1 Direct materials purchases Cost of direct materials available for use Less: Direct materials inventory, January 31 Cost of direct materials placed in production r Direct labor