Question

Budgeted Income Statement and Supporting Budget The budget director of Feathered Friends Inc., with the sales manager has gathered the following for stance of the control the production manage and statement for December a. Estimated sales for December Birdhouse 3.200 wita 50 per unit Bird Feeder 3,000 units at $70 per unit Estimated investories at December 240 Birdhouse 320 units at 27 per unit Bird feeder 270 units at 40 per unit Direct materials: Finished products Bird house 210 527 per unit Bird Feeder 250 units at 54 per un d. Direct materials used in production In manufacture of Bird House: Vood 0.50 per unit of product Pastic 0.50 per unit of product Vood 1.20 ft per unit of product P c 75 per unit of product .. Anticipated cost of purchases and beginning and ending inventory of 1. Direct labor requirements: Fabrication Department 0.20 h at $16 perhe Assembly Department 0.30 h at $12 per Fabrication Department 0.40 h at $16 perhe Assembly Department 0.35 heat $12 per Estimated factory overhead costs for December Indirect factory wages Power and light Insurance and property tax Estimated geneses for December c enow.com Sales are expense tertising expense cesare pense Depreciation expense-office equipment Telephone expenseseling Telephone expensea t ive 4,000 Miscellaneous administrative expense Estimated other come and expense for December Interest expense 122 1. Estimated tax rates 30% Required: 1. Prepare a sales budget for December Feathered Friends Inc. Salles Budget For the Month Ending December 31 Unit Sales Reling

Answer 1

1.

Feathered Friends Inc.
Sales Budget
For the Month Ending December 31
	Unit Sales Volume	Unit Selling Price	Total Sales
Bird house	3200	50	160000
Bird feeder	3000	70	210000
Total revenues from sales			370000

2.

Feathered Friends Inc.
Production Budget
For the Month Ending December 31
	Units
	Bird House	Bird Feeder
Expected units to be sold	3200	3000
Plus desired inventory, December 31	290	250
Total	3490	3250
Less estimated inventory, December 1	320	270
Total units to be produced	3170	2980

3.

Feathered Friends Inc.
Direct Materials Purchases Budget
For the Month Ending December 31
	Wood	Plastic	Total
Required units for production:
Bird house (3170 x 0.8) & (3170 x 0.5)	2536	1585
Bird feeder (2980 x 1.2) & (2980 x 0.75)	3576	2235
Desired units of inventory, December 31	220	200
Total units available	6332	4020
Estimated units of inventory, December 1	200	240
Total units to be purchased	6132	3780
Unit price	7.00	1.00
Total direct materials to be purchased	42924	3780	46704

4.

Feathered Friends Inc.
Direct Labor Cost Budget
For the Month Ending December 31
	Fabrication Department	Assembly Department	Total
Hours required for production:
Bird house (3170 x 0.2) & (3170 x 0.3)	634	951
Bird feeder (2980 x 0.4) & (2980 x 0.35)	1192	1043
Total	1826	1994
Hourly rate	16	12
Total direct labor cost	29216	23928	53144

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