FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 $27 per unit Bird feeder 270 units at $40 per unit - Desired inventories at December 31:
Direct materials: Wood 220 ft. Plastic 200 lbs. Finished products: Bird house 290 units at $27 per unit Bird feeder 250 units at $41 per unit - Direct materials used in production:
In manufacture of Bird House: 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 - Anticipated cost of purchases and beginning and ending inventory of direct materials:
Wood $7.00 per ft. Plastic $1.00 per lb. - Direct labor requirements:
Bird House: Fabrication Department 0.20 hr. at $16 per hr. Assembly Department 0.30 hr. at $12 per hr. Bird Feeder: Fabrication Department 0.40 hr. at $16 per hr. Assembly Department 0.35 hr. at $12 per hr. - Estimated
factory overhead costs for December:Indirect factory wages $75,000 Depreciation of plant and equipment23,000 Power and light 6,000 Insurance and property tax 5,000 - Estimated operating expenses for December:
Sales salaries expense $70,000 Advertising expense 18,000 Office salaries expense 21,000 Depreciation expense—office equipment 600 Telephone expense—selling 550 Telephone expense—administrative 250 Travel expense—selling 4,000 Office supplies expense 200 Miscellaneous administrative expense 400 - Estimated other income and expense for December:
Interest revenue $200 Interest expense 122 - Estimated tax rate: 30%
7. Prepare a selling and administrative expenses budget for December.
Feathered Friends Inc. Selling and Administrative Expenses Budget For the Month Ending December 31 |
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Selling expenses: | |||
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$fill in the blank 86 | ||
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fill in the blank 88 | ||
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fill in the blank 90 | ||
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fill in the blank 92 | ||
Total selling expenses | $fill in the blank 93 | ||
Administrative expenses: | |||
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$fill in the blank 95 | ||
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fill in the blank 97 | ||
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fill in the blank 99 | ||
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fill in the blank 101 | ||
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fill in the blank 103 | ||
Total administrative expenses | fill in the blank 104 | ||
Total operating expenses | $fill in the blank 105 |
8. Prepare a budgeted income statement for December. In the Other revenue and expense section, indicate expenses as negative amounts.
Feathered Friends Inc. Budgeted Income Statement For the Month Ending December 31 |
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---|---|---|---|
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$fill in the blank 107 | ||
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fill in the blank 109 | ||
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$fill in the blank 111 | ||
Operating expenses: | |||
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$fill in the blank 113 | ||
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fill in the blank 115 | ||
Total operating expenses | fill in the blank 116 | ||
Income from operations | $fill in the blank 117 | ||
Other revenue and expense: | |||
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$fill in the blank 119 | ||
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fill in the blank 121 | fill in the blank 122 | |
Income before income tax | $fill in the blank 123 | ||
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fill in the blank 125 | ||
Net income | $fill in the blank 126 |
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