Question

ovement and supporting gets The rector of Peathered Friends Inc., with the assistance of the controller treasures production manager and sales manager, hes gathered the flowing data for use in developing the budgeted Income Matement for December mated sales for December Birdhouse 3,200 units at $50 per un Bird Feeder 3,000 $70 per unit Estimated Inventores at December 1 Direct materia 200 Ft Finished products 320 i 127 per unit 270 units at $40 per Desired inventories at December 31 Direct materials 22015 200 lbs. Pinished products: Bird house 290 units at $27 per un Bird feeder 250 units at 541 per un Direct materials used in production: In manufacture of Bird House 0.80 per of product 0.50 lb, per unit of product in manufacture of Bird Feeder 120 L per unit of product 0.75 lb. per unit of product e. Anticipated cost of purchases and beginning and ending inventar 17.00 per It $1.00 perb t Direct labor requirements Fabrication Department

Answer 1

Ans. 1	Birding Homes & Feeders Inc.
	Sales Budget
	For the Month Ending January 31
		Unit Sales Volume (a)	Unit Selling Price (b)	Total Sales (a*b)
	Bird house	3200	$50	$160,000
	Bird feeder	3000	$70	$210,000
	Total revenue from sales			$370,000
Ans. 2	Birding Homes & Feeders Inc.
	Production Budget
	For the Month Ending January 31
	Particulars	Bird house	Bird feeder
	Expected units to be sold	3200	3000
	Add: Desired ending finished inventory	290	250
	Total required units	3490	3250
	Less: Beginning finished inventory units	-320	-270
	Units to be produced	3170	2980
Ans. 3	Birding Homes & Feeders Inc.
	Direct Materials Purchases Budget
	For the Month Ending January 31
		Wood	Plastic	Total
	Required units for production:
	Bird house	2536	1585
	Bird feeder	3576	2235
	Add: Desired units of ending materials inventory	220	200
	Total units available	6332	4020
	Less: Estimated beginning materials inventory	-200	-240
	Total units to be purchased	6132	3780
	(*) Unit price	$7.00	$1.00
	Total direct materials to be purchased	$42,924	$3,780	$46,704
	*Calculations:
	Required units for production =   Units produced * Materials required per unit
		Wood	Plastic
	Required units for production:
	Bird house	3,170 * 0.80 ft	3,170 * 0.50 lb
	Bird feeder	2,980 * 1.20 ft	2,980 * 0.75 lb
Ans. 4	Birding Homes & Feeders Inc.
	Direct Labor Cost Budget
	For the Month Ending January 31
		Fabrication Department	Assembly Department	Total
	Hours required for production:
	Bird house	634	951
	Bird feeder	1192	1043
	Total	1826	1994
	(*) Hourly rate	$16.00	$12.00
	Total direct labor cost	$29,216	$23,928	$53,144
	*Calculations:
	Hours required for production = Units produced * Direct labor hours per unit
		Fabrication Department	Assembly Department
	Hours required for production:
	Bird house	3,170 * 0.20 hr.	3,170 * 0.30 hr.
	Bird feeder	2,980 * 0.40 hr.	2,980 * 0.35 hr.