Budgeted income statement and supporting budgetsThe budget director of Birding Homes & 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 Januarya. Estimated sales for JanuaryBird house 15,000 units at $25 per unitBird feeder 40,000 units at $15 par unitb. Estimated inventories at January 1:Direct materials:Wood 600 ft.Plastic 1,000 lbs.Finished products:Birdhouse 1,000 units at $15 per unitBird feeder 2,500 units at $8 per unitc. Desired inventories at January 31Direct materials:Wood 500Plastic 1,250 lbs.Finished products:Bird house 1,500 units at $15 par unitBird feeder 3,000 units at $8 per unitd. Direct materials used in production:In manufacture of Bird House:Wood 0.80 ft. per unit of productPlastic 0.10 lb. per unit of productIn manufacture of Bird FeederWood 0.20 ft. per unit of productPlastic 1.00 lb. per unit of producte. Anticipated cost of purchases and beginning and ending inventory of direct materials:Wood $2.50 per ft. Pastic $0.80 per lb.f. Direct labor requirements:Bird House!Fabrication Department 0.40 hr. at $18 per heAssembly Department 0.20 hr. at $12 per hrBird Feeder:Fabrication Department 0.25 hr. at $18 per hrAssembly Department 0.10 hr. at $12 per hr.g. Estimated factory overhead costs for January:Indirect factory wagesDepreciation of plant and equipmentPower and lightInsurance and property taxh. Estimated operating expenses for JanuarySales salaries expenseAdvertising expenseOffice salaries expenseDepreciation expense-office equipment$4,5403.000Travel expense-sellingOffice supplies expenseMiscellaneous administrative expensei. Estimated other revenue and expense for JanuaryInterest revenueInterest expensej. Estimated tax rate: 25%Required:1. Prepare a sales budget for JanuaryBird houseBird feederTotal revenue from salesBirding Homes & Feeders IncSales BudgetFor the Month Ending January 31Unit SalesUnit SellingPriceVolumeExpected units to be soldDesired inventory, January 31Total units availableEstimated inventory, January 1✔Total units to be produced✓$40,00020,00010,0005,0002. 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 BudgetFor the Month Ending January 31✔$125,00080,00040,0004,00025,000✓2,5003,500✓Required units for production:Bird houseBird feederDesired units of inventory, January 31Total units availableEstimated units of inventory, January 11Total units to be purchasedUnit priceTotal direct materials to be purchasedBird HouseBirding Homes & Feeders Inc.Direct Materials Purchases BudgetFor the Month Ending January 31Total Sales3. Prepare a direct materials purchases budget for January. For those boxes in which you must enter subtracted or negative numbers use a minus sign.WoodUnitsBird FeederPlasticTotal

Name: Budgeted income statement and supporting budgetsThe budget director o
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Description: Budgeted income statement and supporting budgetsThe budget director of Birding Homes & Feeders Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the b

Budgeting is a future plan that forecats and calculates the future revenue and expenditure for a…

Business

Accounting

Bird feeder 40,000 un . Estimated inventories Direct materials: Wood 600 ft. Plastic 1,000 lbs. Finished products: Bird house 1,000 unit Bird feeder 2,500 unit Desired inventories at Direct materials: Wood 500 ft. Plastic 1,250 lbs. Finished products: Bird house 1,500 unit Bird feeder 3,000 unit

Bird feeder 40,000 un . Estimated inventories Direct materials: Wood 600 ft. Plastic 1,000 lbs. Finished products: Bird house 1,000 unit Bird feeder 2,500 unit Desired inventories at Direct materials: Wood 500 ft. Plastic 1,250 lbs. Finished products: Bird house 1,500 unit Bird feeder 3,000 unit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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