Budgeted Income Statement and Supporting BudgetsThe 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 house3,200 units at $50 per unitBird feeder3,000 units at $70 per unitEstimated inventories at December 1:Direct materials:Wood200 ft.Plastic240 lbs.Finished products:Bird house320 units at $27 per unitBird feeder270 units at $40 per unitDesired inventories at December 31:Direct materials:Wood220 ft.Plastic200 lbs.Finished products:Bird house290 units at $27 per unitBird feeder250 units at $41 per unitDirect materials used in production:In manufacture of Bird House:Wood0.80 ft. per unit of productPlastic0.50 lb. per unit of productIn manufacture of Bird Feeder:Wood1.20 ft. per unit of productPlastic0.75 lb. per unit of productAnticipated 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 Department0.20 hr. at $16 per hr.Assembly Department0.30 hr. at $12 per hr.Bird Feeder:Fabrication Department0.40 hr. at $16 per hr.Assembly Department0.35 hr. at $12 per hr.Estimated factory overhead costs for December:Indirect factory wages$75,000Depreciation of plant and equipment23,000Power and light6,000Insurance and property tax5,000Estimated operating expenses for December:Sales salaries expense$70,000Advertising expense18,000Office salaries expense21,000Depreciation expense—office equipment600Telephone expense—selling550Telephone expense—administrative250Travel expense—selling4,000Office supplies expense200Miscellaneous administrative expense400Estimated other income and expense for December:Interest revenue$200Interest expense122Estimated tax rate: 30% Required:1. Prepare a sales budget for December. Feathered Friends Inc.Sales BudgetFor the Month Ending December 31 Unit SalesVolumeUnit SellingPriceTotal SalesBird house Bird feeder Total revenue from sales 2. Prepare a production budget for December. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Feathered Friends Inc.Production BudgetFor the Month Ending December 31 Units Bird House Bird FeederExpected units to be sold Desired inventory, December 31 Total units available Estimated inventory, December 1 Total units to be produced 3. Prepare a direct materials purchases budget for December. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Feathered Friends Inc.Direct Materials Purchases BudgetFor the Month Ending December 31 WoodPlasticTotalRequired units for production: Bird house Bird feeder Desired units of inventory, December 31 Total units available Estimated units of inventory, December 1 Total units to be purchased Unit price Total direct materials to be purchased

Since the student has posted multiple requirements, we will answer the first three alone. Thank you.

Required: 1. Prepare a sales budget for December. Feathered Friends Inc. Sales Budget For the Month Ending December 31 Unit Sales Volume Unit Selling Price Total Sales Bird house Bird feeder Total revenue from sales 2. Prepare a production budget for December. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Feathered Friends Inc. Production Budget For the Month Ending December 31 Units Bird House Bird Feeder Expected units to be sold Desired inventory, December 31 Total units available Estimated inventory, December 1 Total units to be produced 3. Prepare a direct materials purchases budget for December. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Feathered Friends Inc. Direct Materials Purchases Budget For the Month Ending December 31 Wood Plastic Total Required units for production: Bird house Bird feeder Desired units of inventory, December 31 Total units available Estimated units of inventory, December 1 Total units to be purchased Unit price Total direct materials to be purchased

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter22: Budgeting

Section: Chapter Questions

Problem 3PB: Budgeted income statement and supporting budgets The budget director of Gold Medal Athletic Co.,...

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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 $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 equipment 23,000

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%

Required:

1. Prepare a sales budget for December.

Feathered Friends Inc. Sales Budget For the Month Ending December 31
	Unit Sales Volume	Unit Selling Price	Total Sales
Bird house
Bird feeder
Total revenue from sales

2. Prepare a production budget for December. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Feathered Friends Inc. Production Budget For the Month Ending December 31
	Units
		Bird House	Bird Feeder
Expected units to be sold
Desired inventory, December 31
Total units available
Estimated inventory, December 1
Total units to be produced

3. Prepare a direct materials purchases budget for December. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Feathered Friends Inc. Direct Materials Purchases Budget For the Month Ending December 31
	Wood	Plastic	Total
Required units for production:
Bird house
Bird feeder
Desired units of inventory, December 31
Total units available
Estimated units of inventory, December 1
Total units to be purchased
Unit price
Total direct materials to be purchased

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Bird house	3,200 units at $50 per unit
Bird feeder	3,000 units at $70 per unit

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

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

Indirect factory wages	$75,000
Depreciation of plant and equipment	23,000
Power and light	6,000
Insurance and property tax	5,000

Interest revenue	$200
Interest expense	122