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Budgeted income statement and supporting budipets The 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 January a. Estimated sales for January Birdhouse 15,000 units at $25 per unit Bird feeder 40,000 units at $15 per unit b. Estimated inventories at January 1: Direct materials: Wood 600 ft. Plastic 1,000 lbs. Finished products Bird house 1,000 units at $15 per unit Bird feeder 2,500 units at $8 per unit c. Desired inventories at January 31: Direct materials: Wood 500 ft. Plastic 1,250 lbs. Finished products: Bird house 1,500 units at $15 per unit Bird feeder 3,000 units at $8 per unit d. Direct materials used in production: In manufacture of Bird House Wood 0.80 ft. per unit of product Plastic 0.10 b. per unit of product In manufacture of Bird Feeder: Wood 0.20 ft per unit of product Plastic 1.00 per unit of product 1. Anticipated cost of purchasis and beginning and ending inventory of direct materials: Wood $2.50 per ft. Pastic $0.80 per b 1. Direct labor requirements: Fabrication Department 0.40 hr. at $18 perhe Assembly Department 0.20 hr at $12 per Fabrication Department 0.25 hr at $18 perhe Assembly Department 0.10 h at $12 per p. Estimated factory overhead costs for January Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax h. Estimated operating expenses for January Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Travel expense-seling Office supplies expense $40,000 20,000 10,000 5,000 J. Estimated tax rate: 25% $125,000 80,000 40,000 4,000 25,000 2,500 3,500 Estimated other revenue and expense for January Interest revenue $4,540 3,000

Budgeted income statement and supporting budipets The 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 January a. Estimated sales for January Birdhouse 15,000 units at $25 per unit Bird feeder 40,000 units at $15 per unit b. Estimated inventories at January 1: Direct materials: Wood 600 ft. Plastic 1,000 lbs. Finished products Bird house 1,000 units at $15 per unit Bird feeder 2,500 units at $8 per unit c. Desired inventories at January 31: Direct materials: Wood 500 ft. Plastic 1,250 lbs. Finished products: Bird house 1,500 units at $15 per unit Bird feeder 3,000 units at $8 per unit d. Direct materials used in production: In manufacture of Bird House Wood 0.80 ft. per unit of product Plastic 0.10 b. per unit of product In manufacture of Bird Feeder: Wood 0.20 ft per unit of product Plastic 1.00 per unit of product 1. Anticipated cost of purchasis and beginning and ending inventory of direct materials: Wood $2.50 per ft. Pastic $0.80 per b 1. Direct labor requirements: Fabrication Department 0.40 hr. at $18 perhe Assembly Department 0.20 hr at $12 per Fabrication Department 0.25 hr at $18 perhe Assembly Department 0.10 h at $12 per p. Estimated factory overhead costs for January Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax h. Estimated operating expenses for January Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Travel expense-seling Office supplies expense $40,000 20,000 10,000 5,000 J. Estimated tax rate: 25% $125,000 80,000 40,000 4,000 25,000 2,500 3,500 Estimated other revenue and expense for January Interest revenue $4,540 3,000

FINANCIAL ACCOUNTING
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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Budgeted income statement and supporting budgets The 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 January: a. Estimated sales for January: Bird house 15,000 units at $25 per unit Bird feeder 40,000 units at $15 per unit b. Estimated inventories at January 1: Direct materials: Wood 600 ft. Plastic 1,000 lbs. Finished products: Bird house 1,000 units at $15 per unit Bird feeder 2,500 units at $8 per unit c. Desired inventories at January 31: Direct materials: Wood 500 ft. Plastic 1,250 lbs. Finished products: Bird house 1,500 units at $15 per unit Bird feeder 3,000 units at $8 per unit d. Direct materials used in production: In manufacture of Bird House: Wood 0.80 ft. per unit of product Plastic 0.10 lb. per unit of product In manufacture of Bird Feeder: Wood 0.20 ft. per unit of product Plastic 1.00 lb. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $2.50 per ft. Plastic $0.80 per lib. f. Direct labor requirements: Bird House: Fabrication Department 0.40 hr. at $18 per hr. Assembly Department 0.20 hr. at $12 per hr. Bird Feeder: Fabrication Department 0.25 hr. at $18 par h Assembly Department 0.10 hr. at $12 par hr g. Estimated factory overhead costs for January: Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax h. Estimated operating expenses for January: Sales salaries expense $40,000 20,000 10,000 5,000 Interest revenue Interest expense J. Estimated tax rate: 25% $125,000 80,000 40,000 Advertising expense Office salaries expense Depreciation expense-office equipment Travel expense-selling Office supplies expense Miscellaneous administrative expense i. Estimated other revenue and expense for January $4,540 3,000 4,000 25,000 2,500 3,500
Transcribed Image Text:Budgeted income statement and supporting budgets The 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 January: a. Estimated sales for January: Bird house 15,000 units at $25 per unit Bird feeder 40,000 units at $15 per unit b. Estimated inventories at January 1: Direct materials: Wood 600 ft. Plastic 1,000 lbs. Finished products: Bird house 1,000 units at $15 per unit Bird feeder 2,500 units at $8 per unit c. Desired inventories at January 31: Direct materials: Wood 500 ft. Plastic 1,250 lbs. Finished products: Bird house 1,500 units at $15 per unit Bird feeder 3,000 units at $8 per unit d. Direct materials used in production: In manufacture of Bird House: Wood 0.80 ft. per unit of product Plastic 0.10 lb. per unit of product In manufacture of Bird Feeder: Wood 0.20 ft. per unit of product Plastic 1.00 lb. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $2.50 per ft. Plastic $0.80 per lib. f. Direct labor requirements: Bird House: Fabrication Department 0.40 hr. at $18 per hr. Assembly Department 0.20 hr. at $12 per hr. Bird Feeder: Fabrication Department 0.25 hr. at $18 par h Assembly Department 0.10 hr. at $12 par hr g. Estimated factory overhead costs for January: Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax h. Estimated operating expenses for January: Sales salaries expense $40,000 20,000 10,000 5,000 Interest revenue Interest expense J. Estimated tax rate: 25% $125,000 80,000 40,000 Advertising expense Office salaries expense Depreciation expense-office equipment Travel expense-selling Office supplies expense Miscellaneous administrative expense i. Estimated other revenue and expense for January $4,540 3,000 4,000 25,000 2,500 3,500
4. Prepare a direct labor cost budget for January. Hours required for production: Bird house Bird feeder Total Hourly rate Total direct labor cost 5. Prepare a factory overhead cost budget for January Indirect factory wages Depreciation of plant and equipment ✔ Power and light ✔ Insurance and property tax ✓ Total factory overhead cost Finished goods inventory, January 1 Work in process inventory, January 1 Direct materials: Direct materials inventory, January 1 Direct materials purchases V Cost of direct materials available for use BE Direct materials inventory, January 31 Cost of direct materials placed in production Direct labor. ✔ Factory overhead Selling expenses: ✔ Sales salaries expense Advertising expense ✔ Travel expense-selling -✓ Total selling expenses 6. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $9,000, and work in process at the end of January is estimated to be $10,500. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Birding Homes & Feeders Inc. Factory Overhead Cost Budget For the Month Ending January 31 ✔ Total manufacturing costs Total work in process during period Work in process inventory, January 31 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, January 31 ✓ Cost of goods sold Administrative expenses: Office salaries expense ✔ Total operating expenses 7. Prepare a selling and administrative expenses budget for January. Revenue from sales Cost of goods sold Gress profit ✓ Operating expenses: Selling expenses Birding Homes & Feeders Inc. Direct Labor Cost Budget For the Month Ending January 31 Operating income Depreciation expense-office equipment Office supplies expense ✔ Miscellaneous administrative expense ✔ Total administrative expenses Fabrication Department ✔ ✓ Administrative expenses ✔ Total operating expenses Yecer o per bang Other revenue and expense Interest revenue Interest expense Net income ✔ 8. Prepare a budgeted income statement for January. In the Other revenue and expense section, indicate expenses as negative amounts. ✔ ✔ Income before income tax Income tax expense ✔ Birding Homes & Feeders Inc. Cost of Goods Sold Budget For the Month Ending January 31 ✓ ✓ ✓ ✓ Assembly Department $ Birding Homes & Feeders Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 ✓ Total Birding Homes & Feeders Inc. www.com Budgeted Income Statement For the Month Ending January 31
Transcribed Image Text:4. Prepare a direct labor cost budget for January. Hours required for production: Bird house Bird feeder Total Hourly rate Total direct labor cost 5. Prepare a factory overhead cost budget for January Indirect factory wages Depreciation of plant and equipment ✔ Power and light ✔ Insurance and property tax ✓ Total factory overhead cost Finished goods inventory, January 1 Work in process inventory, January 1 Direct materials: Direct materials inventory, January 1 Direct materials purchases V Cost of direct materials available for use BE Direct materials inventory, January 31 Cost of direct materials placed in production Direct labor. ✔ Factory overhead Selling expenses: ✔ Sales salaries expense Advertising expense ✔ Travel expense-selling -✓ Total selling expenses 6. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $9,000, and work in process at the end of January is estimated to be $10,500. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Birding Homes & Feeders Inc. Factory Overhead Cost Budget For the Month Ending January 31 ✔ Total manufacturing costs Total work in process during period Work in process inventory, January 31 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, January 31 ✓ Cost of goods sold Administrative expenses: Office salaries expense ✔ Total operating expenses 7. Prepare a selling and administrative expenses budget for January. Revenue from sales Cost of goods sold Gress profit ✓ Operating expenses: Selling expenses Birding Homes & Feeders Inc. Direct Labor Cost Budget For the Month Ending January 31 Operating income Depreciation expense-office equipment Office supplies expense ✔ Miscellaneous administrative expense ✔ Total administrative expenses Fabrication Department ✔ ✓ Administrative expenses ✔ Total operating expenses Yecer o per bang Other revenue and expense Interest revenue Interest expense Net income ✔ 8. Prepare a budgeted income statement for January. In the Other revenue and expense section, indicate expenses as negative amounts. ✔ ✔ Income before income tax Income tax expense ✔ Birding Homes & Feeders Inc. Cost of Goods Sold Budget For the Month Ending January 31 ✓ ✓ ✓ ✓ Assembly Department $ Birding Homes & Feeders Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 ✓ Total Birding Homes & Feeders Inc. www.com Budgeted Income Statement For the Month Ending January 31
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