Question

Budgeted Income Statement and Supporting Budgets The budget director of Feathered Friends Inc., with the assistance of the controller, trener, production manager and sales manager has y hered trafolosing data for use in developing the budgeted Income statement for December a. Estimated sales for December: 3,200 units at $50 per unit Bird feeder 3,000 units at $70 per unit b. Estimated inventories December 1 Direct materials: 240 lbs. Finished products bird house Bird Feeder C Desired inventories Direct materials: 320 units at $27 per un 270 units at $40 per unit December 31 220 Ft Finished products: bird house 290 units at $27 per unit Bird feeder 250 units at $41 per unit d. Direct materials used in productions In manufacture of Bird House: 0.80 ft. per unit of product Plastic 0.50 ib. per unit of product In manufacture of Bird Feeder: Wood 1.20 t. per unit of product Plastic 0.75 lb, per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: $7.00 per it Piastic $1.00 per lb. 1Direct labor requirements: Bird House: Fabrication Department 0.20 h at $16 per hr Assembly Department 0.30 h at $12 perhe Purd Foder

just need 5-8

Answer 1

Sales Budget
December
	Birdhouse	Birdfeeder	Total
Unit Sales Volume	3200	3000	6200
Unit Selling Price	$            50.00	$            70.00
Total Revenue from sales	$ 160,000.00	$ 210,000.00	$ 370,000.00

Production Budget
December
	Birdhouse	Birdfeeder	Total
Expected Unit Sales	3200	3000	6200
Add : Desired Ending Finished Good Units	290	250
Total Required Units	3490	3250	6740
Less : Beginning Finished Good units	320	270
Required Production units	3170	2980	6150

Direct Materials Budget
December
	Wood		Plastic		Total
Required Units for production
Birdhouse	2536	=3170*0.8	1585	=3170*0.5	4121
Birdfeeder	3576	=2980*1.2	2235	=2980*0.75	5811
Add : Desired Ending inventory	220		200
Total Required Units	6332		4020		10352
Less : Beginning inventory	200		240
Total Units to be Purchased	6132		3780		9912
Unit Price	$               7.00		$               1.00
Total costs for direct materials	$    42,924.00		$      3,780.00		$ 46,704.00

Direct Labor Budget
December
	Fabrication Department		Assembly Department		Total
Hours Required for Production
Birdhouse	634	=3170*0.2	951	=3170*0.3	1585
Birdfeeder	1192	=2980*0.4	1043	=2980*0.35	2235
Total hours	1826		1994		3820
Hourly Rate	$            16.00		$            12.00
Total cost of direct labor	$    29,216.00		$    23,928.00		$ 53,144.00