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Budgeted Income Statement and Supporting Budgets. 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 2021: 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:                Finished Products:             Wood: 198 ft.                      Birdhouse: 500 units at $28 per unit.             Plastic: 420 lbs.                   Bird feeder: 210 units at $40 per unit.   Desired inventories at January 31:   Direct Materials:                Finished Products:             Wood: 220 ft.                      Birdhouse: 400 units at $28 per unit.             Plastic: 340 lbs.                   Bird feeder: 250 units at $40 per unit.   Direct materials used in production:   In Mfg. of the Birdhouse: In Mfg. of the Bird Feeder:             Wood: 0.80 ft. per unit.   1.20 ft. per unit.             Plastic: 0.50 lb. per unit.  0.75 lb. per unit.   Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood:           $9 per ft.                   Plastic: $1.40 per lb. Direct labor requirements:   Birdhouse:             Fabrication Department: 0.25 hr. at $20 per hour.             Assembly Department:     0.30 hr. at $15 per hour. Bird Feeder:             Fabrication Department: 0.40 hr. at $20 per hour.             Assembly Department:     0.35 hr. at $15 per hour.   Estimated factory overhead costs for January:   Indirect Factory Wages: $92,000                       Power and Light: $10,100 Depreciation-Plant and Equip.: $34,000          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 Expense-Office Equipment            1,100 Telephone Expense-Selling:                                    1,000 Telephone Expense-Administrative:                        400 Travel Expense-Selling:                                 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%

Budgeted Income Statement and Supporting Budgets. 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 2021: 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:                Finished Products:             Wood: 198 ft.                      Birdhouse: 500 units at $28 per unit.             Plastic: 420 lbs.                   Bird feeder: 210 units at $40 per unit.   Desired inventories at January 31:   Direct Materials:                Finished Products:             Wood: 220 ft.                      Birdhouse: 400 units at $28 per unit.             Plastic: 340 lbs.                   Bird feeder: 250 units at $40 per unit.   Direct materials used in production:   In Mfg. of the Birdhouse: In Mfg. of the Bird Feeder:             Wood: 0.80 ft. per unit.   1.20 ft. per unit.             Plastic: 0.50 lb. per unit.  0.75 lb. per unit.   Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood:           $9 per ft.                   Plastic: $1.40 per lb. Direct labor requirements:   Birdhouse:             Fabrication Department: 0.25 hr. at $20 per hour.             Assembly Department:     0.30 hr. at $15 per hour. Bird Feeder:             Fabrication Department: 0.40 hr. at $20 per hour.             Assembly Department:     0.35 hr. at $15 per hour.   Estimated factory overhead costs for January:   Indirect Factory Wages: $92,000                       Power and Light: $10,100 Depreciation-Plant and Equip.: $34,000          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 Expense-Office Equipment            1,100 Telephone Expense-Selling:                                    1,000 Telephone Expense-Administrative:                        400 Travel Expense-Selling:                                 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%

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 2CMA
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Chapter 22 Homework

 

PR22-3A  Budgeted Income Statement and Supporting Budgets.

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 2021:

  1. Estimated sales for January:

Birdhouse                                         7.500 units at $66 per unit

Bird feeder                                       5,000 units at $82 per unit

 

  1. Estimated inventories at January 1:

 

Direct Materials:                Finished Products:

            Wood: 198 ft.                      Birdhouse: 500 units at $28 per unit.

            Plastic: 420 lbs.                   Bird feeder: 210 units at $40 per unit.

 

  1. Desired inventories at January 31:

 

Direct Materials:                Finished Products:

            Wood: 220 ft.                      Birdhouse: 400 units at $28 per unit.

            Plastic: 340 lbs.                   Bird feeder: 250 units at $40 per unit.

 

  1. Direct materials used in production:

 

In Mfg. of the Birdhouse: In Mfg. of the Bird Feeder:

            Wood: 0.80 ft. per unit.   1.20 ft. per unit.

            Plastic: 0.50 lb. per unit.  0.75 lb. per unit.

 

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

Wood:           $9 per ft.                   Plastic: $1.40 per lb.

  1. Direct labor requirements:

 

Birdhouse:

            Fabrication Department: 0.25 hr. at $20 per hour.

            Assembly Department:     0.30 hr. at $15 per hour.

Bird Feeder:

            Fabrication Department: 0.40 hr. at $20 per hour.

            Assembly Department:     0.35 hr. at $15 per hour.

 

  1. Estimated factory overhead costs for January:

 

Indirect Factory Wages: $92,000                       Power and Light: $10,100

Depreciation-Plant and Equip.: $34,000          Insurance and Property Tax: $2,800

 

  1. Estimated operating expenses for January:

 

Sales Salaries Expense:                             $85,100

Advertising Expense:                                               17,600

Office Salaries Expense:                             19,200

Depreciation Expense-Office Equipment            1,100

Telephone Expense-Selling:                                    1,000

Telephone Expense-Administrative:                        400

Travel Expense-Selling:                                 3,800

Office Supplies Expense:                                 350

Miscellaneous Administrative Expense:                 250

 

  1. Estimated other income and expense for January:

 

Interest Revenue: $450                Interest Expense: $294

 

  1. Estimated tax rate: 25%

 

asnwer the problems in the pictures, thanks for your time. 

A1 A B Question 1 Question 2 Bird house Bird feeder Total revenue from sales QUE X Birds and Beyond, Inc. Sales Budget For the Month Ending January 31, 2021 Question 3 C Birds and Beyond, Inc. Production Budget For the Month Ending January 31, 2021 fx PROBLEM 22-3A Expected units to be sold Plus desired inventory, January 31, 2021 Total Less estimated inventory, January 1, 2021 Total units to be produced Question 4 Birds and Beyond, Inc. Direct Materials Purchases Budget For the Month Ending Jan. 31, 2021 Required units for production: Bird house Bird feeder Plus desired units of inventory, 1/31/2021 Total Less estimated units of inventory, 1/1/2021 Total units to be purchased Unit price Total direct materials to be purchased Birds and Beyond, Inc. Direct Labor Cost Budget For the Month Ending January 31, 2021 Hourly rate Total direct labor cost Hours required for production: Bird house Bird feeder Total Hours Required Birds and Beyond, Inc. Factory Overhead Cost Budget For the Month Ending January 31, 2021 Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax Total D Unit Sales Volume Unit Selling Price Bird House Wood E Fabrication Dept. Bird Feeder Plastic Assembly Dept. F Total Sales Total Total G H
Transcribed Image Text:A1 A B Question 1 Question 2 Bird house Bird feeder Total revenue from sales QUE X Birds and Beyond, Inc. Sales Budget For the Month Ending January 31, 2021 Question 3 C Birds and Beyond, Inc. Production Budget For the Month Ending January 31, 2021 fx PROBLEM 22-3A Expected units to be sold Plus desired inventory, January 31, 2021 Total Less estimated inventory, January 1, 2021 Total units to be produced Question 4 Birds and Beyond, Inc. Direct Materials Purchases Budget For the Month Ending Jan. 31, 2021 Required units for production: Bird house Bird feeder Plus desired units of inventory, 1/31/2021 Total Less estimated units of inventory, 1/1/2021 Total units to be purchased Unit price Total direct materials to be purchased Birds and Beyond, Inc. Direct Labor Cost Budget For the Month Ending January 31, 2021 Hourly rate Total direct labor cost Hours required for production: Bird house Bird feeder Total Hours Required Birds and Beyond, Inc. Factory Overhead Cost Budget For the Month Ending January 31, 2021 Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax Total D Unit Sales Volume Unit Selling Price Bird House Wood E Fabrication Dept. Bird Feeder Plastic Assembly Dept. F Total Sales Total Total G H
Total Question 6 Birds and Beyond, Inc. Cost of Goods Sold Budget For the Month Ending January 31, 2021 Finished goods inventory, January 1, 2021 Work in process inventory, January 1, 2021 Direct materials: Direct materials inventory, January 1, 2021 Direct materials purchases Cost of direct materials available for use Less direct materials inventory, Jan. 31, 2021 Cost of direct materials placed in production Direct labor Factory overhead Total manufacturing costs Total work in process during period Less work in process, January 31, 2021 Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, Jan. 31, 2021 Cost of goods sold Question 7 Birds and Beyond, Inc. Selling and Administrative Expenses Budget For the Month Ending January 31, 2021 Selling expenses: Sales salaries expense Advertising expense Telephone expense-selling Travel expense-selling Total selling expenses Administrative expenses: Office salaries expense Depreciation expense-office equipment Telephone expense-administrative Office supplies expense Miscellaneous administrative expense Total administrative expenses Total operating expenses Question 8 Birds and Beyond, Inc. Budgeted Income Statement For the Month Ending January 31, 2021 Revenue from sales Cost of goods sold Gross profit Operating expenses: Selling expenses Administrative expenses Total operating expenses Income from operations Other income: Interest revenue Other expenses: Interest expense Income before income tax Income tax expense (25% rate) Net income
Transcribed Image Text:Total Question 6 Birds and Beyond, Inc. Cost of Goods Sold Budget For the Month Ending January 31, 2021 Finished goods inventory, January 1, 2021 Work in process inventory, January 1, 2021 Direct materials: Direct materials inventory, January 1, 2021 Direct materials purchases Cost of direct materials available for use Less direct materials inventory, Jan. 31, 2021 Cost of direct materials placed in production Direct labor Factory overhead Total manufacturing costs Total work in process during period Less work in process, January 31, 2021 Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, Jan. 31, 2021 Cost of goods sold Question 7 Birds and Beyond, Inc. Selling and Administrative Expenses Budget For the Month Ending January 31, 2021 Selling expenses: Sales salaries expense Advertising expense Telephone expense-selling Travel expense-selling Total selling expenses Administrative expenses: Office salaries expense Depreciation expense-office equipment Telephone expense-administrative Office supplies expense Miscellaneous administrative expense Total administrative expenses Total operating expenses Question 8 Birds and Beyond, Inc. Budgeted Income Statement For the Month Ending January 31, 2021 Revenue from sales Cost of goods sold Gross profit Operating expenses: Selling expenses Administrative expenses Total operating expenses Income from operations Other income: Interest revenue Other expenses: Interest expense Income before income tax Income tax expense (25% rate) Net income
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As you have asked more than three subparts, as per guidelines we can only be able to solve first three subparts please post remaining questions separately.

 

Budgeting is a process of estimation of future income and expenses. We can plan for requirements of money for future expenses and can arrange money accordingly.

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