Budgeted Income Statement and Supporting Budgets
The budget director of Birds of a Feather 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:
Birdhouse | 6,000 units at $55 per unit |
Bird feeder | 4,500 units at $75 per unit |
Direct materials: | |
Wood | 220 ft. |
Plastic | 250 lb. |
Finished products: | |
Birdhouse | 300 units at $23 per unit |
Bird feeder | 240 units at $34 per unit |
Direct materials: | |
Wood | 180 ft. |
Plastic | 210 lb. |
Finished products: | |
Birdhouse | 340 units at $23 per unit |
Bird feeder | 200 units at $34 per unit |
In manufacture of BirdHouse: | |
Wood | 0.80 ft. per unit of product |
Plastic | 0.50 lb. per unit of product |
In manufacture of Bird Feeder: | |
Wood | 1.20 ft. per unit of product |
Plastic | 0.75 lb. per unit of product |
Wood | $8.00 per ft. |
Plastic | $1.20 per lb. |
Birdhouse: | |
Fabrication Department | 0.20 hr. at $15 per hr. |
Assembly Department | 0.30 hr. at $12 per hr. |
Bird Feeder: | |
Fabrication Department | 0.40 hr. at $15 per hr. |
Assembly Department | 0.35 hr. at $12 per hr. |
Indirect factory wages | $80,000 |
Depreciation of plant and equipment | 25,000 |
Power and light | 8,000 |
Insurance and property tax | 2,000 |
Sales salaries expense | $90,000 |
Advertising expense | 20,000 |
Office salaries expense | 18,000 |
Depreciation expense—office equipment | 800 |
Telephone expense—selling | 500 |
Telephone expense—administrative | 200 |
Travel expense—selling | 5,000 |
Office supplies expense | 250 |
Miscellaneous administrative expense | 450 |
Interest revenue | $300 |
Interest expense | 224 |
Required:
1. Prepare a sales budget for January.
Birds of a Feather Inc. Sales Budget For the Month Ending January 31 |
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---|---|---|---|
Unit Sales Volume |
Unit Selling Price |
Total Sales | |
Birdhouse | |||
Bird feeder | |||
Total revenue from sales | $ |
2. Prepare a production budget for January.
Birds of a Feather Inc. Production Budget For the Month Ending January 31 |
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---|---|---|---|---|
Units | ||||
Birdhouse | Bird Feeder | |||
Expected units to be sold | ||||
Plus desired inventory, January 31 | ||||
Total | ||||
Less estimated inventory, January 1 | ||||
Total units to be produced |
3. Prepare a direct materials purchases budget for January.
Birds of a Feather Inc. Direct Materials Purchases Budget For the Month Ending January 31 |
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---|---|---|---|
Wood | Plastic | Total | |
Required units for production: | |||
Birdhouse | |||
Bird feeder | |||
Plus desired units of inventory, January 31 | |||
Total | |||
Less estimated units of inventory, January 1 | |||
Total units to be purchased | |||
Unit price | $ | $ | |
Total direct materials to be purchased | $ | $ | $ |
4. Prepare a direct labor cost budget for January.
Birds of a Feather Inc. Direct Labor Cost Budget For the Month Ending January 31 |
||||||
---|---|---|---|---|---|---|
Fabrication Department |
Assembly Department | Total | ||||
Hours required for production: | ||||||
Birdhouse | ||||||
Bird feeder | ||||||
Total | ||||||
Hourly rate | $ | $ | ||||
Total direct labor cost | $ | $ | $ |
5. Prepare a factory overhead cost budget for January.
Birds of a Feather Inc. Factory Overhead Cost Budget For the Month Ending January 31 |
||
---|---|---|
Indirect factory wages | ||
Depreciation of plant and equipment | ||
Power and light | ||
Insurance and property tax | ||
Total | $ |
6. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $29,000, and work in process at the end of January is estimated to be $35,400.
Birds of a Feather Inc. Cost of Goods Sold Budget For the Month Ending January 31 |
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---|---|---|---|
Direct materials: | |||
Cost of direct materials available for use | |||
Cost of direct materials placed in production | |||
Total manufacturing costs | |||
Total work in process during the period | |||
Cost of goods manufactured | |||
Cost of finished goods available for sale | |||
Cost of goods sold | $ |
7. Prepare a selling and administrative expenses budget for January.
Birds of a Feather Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 |
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---|---|---|---|
Selling expenses: | |||
Sales salaries expense | |||
Advertising expense | |||
Telephone expense—selling | |||
Travel expense—selling | |||
Total selling expenses | |||
Administrative expenses: | |||
Office salaries expense | |||
Depreciation expense—office equipment | |||
Telephone expense—administrative | |||
Office supplies expense | |||
Miscellaneous administrative expense | |||
Total administrative expenses | |||
Total operating expenses | $ |
8. Prepare a budgeted income statement for January.
Birds of a Feather Inc. Budgeted Income Statement For the Month Ending January 31 |
|||
---|---|---|---|
Selling and administrative expenses: | |||
Total selling and administrative expenses | |||
Other revenue: | |||
Other expenses: | |||
$ |
Sales Budget | |||
January | |||
Birdhouse | Birdfeeder | Total | |
Unit Sales Volume | 6000 | 4500 | 10500 |
Unit Selling Price | $ 55.00 | $ 75.00 | |
Total Revenue from sales | $ 330,000.00 | $ 337,500.00 | $ 667,500.00 |
Production Budget | |||
January | |||
Birdhouse | Birdfeeder | Total | |
Expected Unit Sales | 6000 | 4500 | 10500 |
Add : Desired Ending Finished Good Units | 340 | 200 | |
Total Required Units | 6340 | 4700 | 11040 |
Less : Beginning Finished Good units | 300 | 240 | |
Required Production units | 6040 | 4460 | 10500 |
Direct Materials Budget | |||||
January | |||||
Wood | Plastic | Total | |||
Required Units for production | |||||
Birdhouse | 4832 | =6040*0.8 | 3020 | =6040*0.5 | 7852 |
Birdfeeder | 5352 | =4460*1.2 | 3345 | =4460*0.75 | 8697 |
Add : Desired Ending inventory | 180 | 210 | |||
Total Required Units | 10364 | 6575 | 16939 | ||
Less : Beginning inventory | 220 | 250 | |||
Total Units to be Purchased | 10144 | 6325 | 16469 | ||
Unit Price | $ 8.00 | $ 1.20 | |||
Total costs for direct materials | $ 81,152.00 | $ 7,590.00 | $ 88,742.00 |
Direct Labor Budget | |||||
January | |||||
Fabrication Department |
Assembly Department |
Total | |||
Hours Required for Production | |||||
Birdhouse | 1208 | =6040*0.2 | 1812 | =6040*0.3 | 3020 |
Birdfeeder | 1784 | =4460*0.4 | 1561 | =4460*0.35 | 3345 |
Total hours | 2992 | 3373 | 6365 | ||
Hourly Rate | $ 15.00 | $ 12.00 | |||
Total cost of direct labor | $ 44,880.00 | $ 40,476.00 | $ 85,356.00 |
Budgeted Income Statement and Supporting Budgets The budget director of Birds of a Feather Inc., with the assistance o...
Budgeted Income Statement and Supporting Budgets The budget director of Birds of a Feather 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: Birdhouse 6,000 units at $55 per unit Bird feeder 4,500 units at $75 per unit Estimated inventories at January 1: Direct materials: Wood 220 ft. Plastic 250 lb. Finished products: Birdhouse 300 units at...
Budgeted Income Statement and Supporting Budgets The budget director of Birds of a Feather 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: Birdhouse 6,000 units at $55 per unit Bird feeder 4,500 units at $75 per unit Estimated inventories at January 1: Direct materials: Wood 220 ft. Plastic 250 lb. Finished products: Birdhouse 300 units at...
Budgeted Income Statement and Supporting Budgets The budget director of Birds of a Feather 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: Birdhouse 6,000 units at $55 per unit Bird feeder 4,500 units at $75 per unit b. Estimated inventories at January 1: Direct materials: Wood 220 ft. Plastic 250 lb. Finished products: Birdhouse 300...
Budgeted Income Statement and Supporting Budgets The budget director of Birds of a Feather 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: Birdhouse 6,000 units at $55 per unit Bird feeder 4,500 units at $75 per unit b. Estimated inventories at January 1: Direct materials: Wood 220 ft. Plastic 250 lb. Finished products: Birdhouse 300...
Budgeted Income Statement and Supporting Budgets The budget director of Birds of a Feather 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: Birdhouse 6,000 units at $55 per unit Bird feeder 4,500 units at $75 per unit b. Estimated inventories at January 1: Direct materials: Wood 220 ft. Plastic 250 lb. Finished products: Birdhouse 300...
Budgeted Income statement and supporting Budgets The budget director of Birds of a Feather 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: Birdhouse 6,000 units at $55 per unit Bird feeder 4,500 units at $75 per unit b. Estimated inventories at January 1: Direct materials: Wood 220 ft. Plastic 250 lb. Finished products: Birdhouse 300...
Budgeted Income Statement and Supporting Budgets The budget director of Feathered Friends 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 December: Estimated sales for December: Bird house 3,200 units at $50 per unit Bird feeder 3,000 units at $70 per unit Estimated inventories at December 1: Direct materials: Wood 200 ft. Plastic 240 lbs. Finished products: Bird house 320 units at...
Budgeted Income Statement and Supporting Budgets The budget director of Feathered Friends 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 December: Estimated sales for December: Bird house 3,200 units at $50 per unit Bird feeder 3,000 units at $70 per unit Estimated inventories at December 1: Direct materials: Wood 200 ft. Plastic 240 lbs. Finished products: Bird house 320 units at...
Budgeted Income Statement and Supporting Budgets The budget director of Feathered Friends 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 December: Estimated sales for December: Bird house 3,200 units at $50 per unit Bird feeder 3,000 units at $70 per unit Estimated inventories at December 1: Direct materials: Wood 200 ft. Plastic 240 lbs. Finished products: Bird house 320 units at...
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