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: Estimated sales for January: Bird house 15,000 units at $25 per unit Bird feeder 40,000 units at $15 per unit 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 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 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 Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $2.50 per ft. Plastic $0.80 per lb. 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 per hr. Assembly Department 0.10 hr. at $12 per hr. Estimated factory overhead costs for January: Indirect factory wages $40,000 Depreciation of plant and equipment 20,000 Power and light 10,000 Insurance and property tax 5,000 Estimated operating expenses for January: Sales salaries expense $125,000 Advertising expense 80,000 Office salaries expense 40,000 Depreciation expense—office equipment 4,000 Travel expense—selling 25,000 Office supplies expense 2,500 Miscellaneous administrative expense 3,500 Estimated other revenue and expense for January: Interest revenue $4,540 Interest expense 3,000 Estimated tax rate: 25%
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: Estimated sales for January: Bird house 15,000 units at $25 per unit Bird feeder 40,000 units at $15 per unit 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 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 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 Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $2.50 per ft. Plastic $0.80 per lb. 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 per hr. Assembly Department 0.10 hr. at $12 per hr. Estimated factory overhead costs for January: Indirect factory wages $40,000 Depreciation of plant and equipment 20,000 Power and light 10,000 Insurance and property tax 5,000 Estimated operating expenses for January: Sales salaries expense $125,000 Advertising expense 80,000 Office salaries expense 40,000 Depreciation expense—office equipment 4,000 Travel expense—selling 25,000 Office supplies expense 2,500 Miscellaneous administrative expense 3,500 Estimated other revenue and expense for January: Interest revenue $4,540 Interest expense 3,000 Estimated tax rate: 25%
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: Estimated sales for January: Bird house 15,000 units at $25 per unit Bird feeder 40,000 units at $15 per unit 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 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 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 Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $2.50 per ft. Plastic $0.80 per lb. 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 per hr. Assembly Department 0.10 hr. at $12 per hr. Estimated factory overhead costs for January: Indirect factory wages $40,000 Depreciation of plant and equipment 20,000 Power and light 10,000 Insurance and property tax 5,000 Estimated operating expenses for January: Sales salaries expense $125,000 Advertising expense 80,000 Office salaries expense 40,000 Depreciation expense—office equipment 4,000 Travel expense—selling 25,000 Office supplies expense 2,500 Miscellaneous administrative expense 3,500 Estimated other revenue and expense for January: Interest revenue $4,540 Interest expense 3,000 Estimated tax rate: 25%
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:
Estimated sales for January:
Bird house
15,000 units at $25 per unit
Bird feeder
40,000 units at $15 per unit
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
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
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
Anticipated cost of purchases and beginning and ending inventory of direct materials:
Wood
$2.50 per ft.
Plastic
$0.80 per lb.
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 per hr.
Assembly Department
0.10 hr. at $12 per hr.
Estimated factory overhead costs for January:
Indirect factory wages
$40,000
Depreciation of plant and equipment
20,000
Power and light
10,000
Insurance and property tax
5,000
Estimated operating expenses for January:
Sales salaries expense
$125,000
Advertising expense
80,000
Office salaries expense
40,000
Depreciation expense—office equipment
4,000
Travel expense—selling
25,000
Office supplies expense
2,500
Miscellaneous administrative expense
3,500
Estimated other revenue and expense for January:
Interest revenue
$4,540
Interest expense
3,000
Estimated tax rate: 25%
Transcribed Image Text:5. Prepare a factory overhead cost budget for January.
Birding Homes & Feeders Inc.
Factory Overhead Cost Budget
For the Month Ending January 31
Total factory overhead cost
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.
Direct materials:
Birding Homes & Feeders Inc.
Cost of Goods Sold Budget
For the Month Ending January 31
Cost of direct materials available for use
Total manufacturing costs
$ $
$ $
Cost of direct materials placed in production $ $
$
Transcribed Image Text:Total manufacturing costs
Total work in process during period
Cost of goods manufactured
Cost of finished goods available for sale
Cost of goods sold
$ $
=
$ $
tA
$ $
Definition Definition Basic financial report that forecasts estimated profits, revenue, and expenses for the company in the coming year or months. Budgeted income statements are helpful for companies in planning for the future, making better decisions, and allocating available resources more effectively and efficiently.
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