3. Prepare a direct materials purchases budget for July. 4. Prepare a direct labor cost budget for July. PR 22-3A Budgeted income statement and supporting budgets /4. Total direct labor cost in Fabrication Dept., $29,216 The budget director of Feathered Friends Inc.., with the assistance of the controller, trea- surer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for December 2016: OBJ. 4 a. Estimated sales for December: Bird house.... 3,200 units at $50 per unit 3,000 units at $70 per unit Bird feeder.... 1066 Chapter 22 Budgeting b. Estimated inventories at December 1: Direct materials: Finished products: Bird house....... ben • 320 units at $27 per unit ,270 units at $40 per unit 200 ft. 240 lbs. Wood ..... ... Bird feeder... . . . Plastic........ $2 c. Desired inventories at December 31: Finished products: Bird house.... Direct materials: 290 units at $27 per unit 250 units at $41 per unit Wood ....... 220 ft. Bird feeder...... 200 lbs. Plastic.... d. Direct materials used in production: In manufacture of Bird Feeder: Wood ... In manufacture of Bird House: 1.20 ft. per unit of product 0.75 lb. per unit of product 0.80 ft. per unit of product 0.50 lb. per unit of product Wood .... Plastic... lan Plastic... e. Anticipated cost of purchases and beginning and ending inventory of direct materials; inu $1.00 per Ib. 4 Wood ... $7.00 per ft. V Plastic.... f. Direct labor requirements: Bird House: 0.20 hr. at $16 per hr. Fabrication Department 0.30 hr. at $12 per hr. Assembly Department... Bird Feeder: 0.40 hr. at $16 per hr. 0.35 hr. at $12 per hr. esildins Fabrication Department pubto tinuo Assembly Department... g., Estimated factory overhead costs for December: $75,000 23,000 6 $6,000 Power and light DUggto Jinu 1egoA Ro Jinu eq Indirect factory wages 5,000 Insurance and property tax Depreciation of plant and equipment Dobolg to tinu h. Estimated operating expenses for December: $70,000 Sales salaries expense 18,000 e 21,000 2 0ld Advertising expense le Office salaries expense - p 3od 600 550 Depreciation expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense-selling Office supplies expense Miscellaneous administrative expense Rod 250 Inertiegat y 4,000 108.0 200 1000 400 Estimated other income and expense for December: i. $200 Interest revenue 122 Interest expense Apsbaus j. Estimated tax rate: 30% eno en 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.