> Budgeted Income Statement and Supporting Budgets The budget director of Birds and Beyond Inc., with...
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> Budgeted Income Statement and Supporting Budgets The budget director of Birds and Beyond Inc., with the assistance of the controller, treasurer, production manager, and sales manag has gathered the following data for use in developing the budgeted income statement for January: a. Estimated sales for January: Birdhouse Bird feeder 7,500 units at $66 per unit 5,000 units at $82 per unit b. Estimated inventories at January 1: Direct materials: Wood Plastic Finished products: Birdhouse Bird feeder 198 ft. 420 lb. 500 units at $28 per unit 210 units at $40 per unit c. Desired inventories at January 31: Direct materials: Wood Plastic Finished products: Birdhouse Bird feeder 220 ft. 340 lb. 400 units at $28 per unit 250 units at $40 per unit d. Direct materials used in production: In manufacture of BirdHouse: Wood Plastic 0.80 ft. per unit of product 0.50 lb. per unit of product In manufacture of Bird Feeder: Wood 1.20 ft. per unit of product 0.75 lb. per unit of product Plastic e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood Plastic f. Direct labor requirements: $9.00 per ft. $1.40 per lb. f. Direct labor requirements: Birdhouse: Fabrication Department Assembly Department Bird Feeder: 0.25 hr. at $20 per hr. 0.30 hr. at $15 per hr. Fabrication Department 0.40 hr. at $20 per hr. Assembly Department 0.35 hr. at $15 per hr. g. Estimated factory overhead costs for January: Indirect factory wages Depreciation of plant and equipment Power and light > Insurance and property tax $92,000 34,000 10,100 2,800 h. Estimated operating expenses for January: Sales salaries expense $85,100 Advertising expense 17,600 Office salaries expense 19,200 Depreciation expense-office equipment 1,100 Telephone expense-selling 1,000 Telephone expense-administrative 400 Travel expense-selling 3,800 Office supplies expense 350 Miscellaneous administrative expense 250 1. Estimated other income and expense for January: Interest revenue $450 Interest expense 294 j. Estimated tax rate: 25% Required: 1. Prepare a sales budget for January. > Budgeted Income Statement and Supporting Budgets The budget director of Birds and Beyond Inc., with the assistance of the controller, treasurer, production manager, and sales manag has gathered the following data for use in developing the budgeted income statement for January: a. Estimated sales for January: Birdhouse Bird feeder 7,500 units at $66 per unit 5,000 units at $82 per unit b. Estimated inventories at January 1: Direct materials: Wood Plastic Finished products: Birdhouse Bird feeder 198 ft. 420 lb. 500 units at $28 per unit 210 units at $40 per unit c. Desired inventories at January 31: Direct materials: Wood Plastic Finished products: Birdhouse Bird feeder 220 ft. 340 lb. 400 units at $28 per unit 250 units at $40 per unit d. Direct materials used in production: In manufacture of BirdHouse: Wood Plastic 0.80 ft. per unit of product 0.50 lb. per unit of product In manufacture of Bird Feeder: Wood 1.20 ft. per unit of product 0.75 lb. per unit of product Plastic e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood Plastic f. Direct labor requirements: $9.00 per ft. $1.40 per lb. f. Direct labor requirements: Birdhouse: Fabrication Department Assembly Department Bird Feeder: 0.25 hr. at $20 per hr. 0.30 hr. at $15 per hr. Fabrication Department 0.40 hr. at $20 per hr. Assembly Department 0.35 hr. at $15 per hr. g. Estimated factory overhead costs for January: Indirect factory wages Depreciation of plant and equipment Power and light > Insurance and property tax $92,000 34,000 10,100 2,800 h. Estimated operating expenses for January: Sales salaries expense $85,100 Advertising expense 17,600 Office salaries expense 19,200 Depreciation expense-office equipment 1,100 Telephone expense-selling 1,000 Telephone expense-administrative 400 Travel expense-selling 3,800 Office supplies expense 350 Miscellaneous administrative expense 250 1. Estimated other income and expense for January: Interest revenue $450 Interest expense 294 j. Estimated tax rate: 25% Required: 1. Prepare a sales budget for January.
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Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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