Question

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 40,000 units at $15 per unit Bird feeder 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

Answer 1

40000 2.0000 Indirect factory wager Depreciation of plant, eg. Power & light Insuranec s property tax Total factory overhead cost 10000 5000 75000 sales Production 375000 o Bird house Bird feeder (sales) (sales) 15500 40500 600000 Direct material, wood (oirect material cosumed) 51250 50000 33604 33700 Plastic (plastic consumed in prod?) Direct labour 146000 2 2.8000 Bird house Bird feeder Factory overheads Factory cost 75000 530200 531854 + 2.30000 Adminitrative overheads selling overheads 50000 811854 Cost of goods Manufactured for sale Cost of finished goods Bird house (

125000 Selling Expenses sales salaries Expense Advertising experie Travel Expense 80000 25000 230000 2000 o Administrative expenses office salaries Expenses Depreciation Expense office supplies Experie Misc. Admin Expense 4000 2500 3500 725 oe 50000 28000D 84854 Direct Material Direct labour Oberheads 37000 75000 2.800 Operating Expenses Admin - 230000 steling - 50000 280000 other revenue & Expense 975000 Income before tax 498146 Tax @ 25t. (124536.5) 3736095

Bird house produced 15000 opening stock (1000) Gold closing stock 11500 produced = 15500 as mentioned in the same way 40.500 Bird feeder = = 15500 40500 wood xo.8 ft x 2.5 @ H plastic xool tb x 0.8 @ Lb Dood x 012ft * 2:5@1 plastic x lib. x 0°8 @f 31000 1240 [1550000 18X2.5] [15500801X0.8 8250 [40500X0.242:57 49 400 (4500 XIXOS
Direct material-31000+1240+8250+40400=84854.