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4. Prepare a Budget that estimates direct labor hours and related costs needed to support budgeted...

  1. 4. Prepare a Budget that estimates direct labor hours and related costs needed to support budgeted production.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 Budget that estimates the cost for each item of factory overhead needed to support budgeted production.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
    • Direct materials inventory, January 1
    • Direct materials inventory, January 31
    • Direct materials purchases
    • Factory Overhead
    • Finished goods inventory, January 1
    • Finished goods inventory, January 31
    • Direct materials inventory, January 1
    • Direct materials inventory, January 31
    • Direct materials purchases
    • Factory Overhead
    • Work in process inventory, January 1
    • Work in process inventory, January 31
    Direct materials:
       
    • Direct materials inventory, January 1
    • Direct materials inventory, January 31
    • Finished goods inventory, January 1
    • Finished goods inventory, January 31
    • Work in process inventory, January 1
    • Work in process inventory, January 31
       
    • Direct labor
    • Direct materials purchases
    • Factory overhead
    • Finished goods inventory, January 31
    • Work in process inventory, January 1
    • Work in process inventory, January 31
      Cost of direct materials available for use
       
    • Less: Direct materials inventory, January 1
    • Less: Direct materials inventory, January 31
    • Less: Finished goods inventory, January 1
    • Less: Finished goods inventory, January 31
    • Less: Work in process inventory, January 1
    • Less: Work in process inventory, January 31
      Cost of direct materials placed in production
    • Direct labor
    • Direct materials purchases
    • Finished goods inventory, January 1
    • Finished goods inventory, January 31
    • Work in process inventory, January 1
    • Work in process inventory, January 31
    • Direct materials purchases
    • Factory overhead
    • Finished goods inventory, January 1
    • Finished goods inventory, January 31
    • Work in process inventory, January 1
    • Work in process inventory, January 31
    Total manufacturing costs
    Total work in process during the period
    • Less: Direct materials inventory, January 1
    • Less: Direct materials inventory, January 31
    • Less: Finished goods inventory, January 1
    • Less: Finished goods inventory, January 31
    • Less: Work in process inventory, January 1
    • Less: Work in process inventory, January 31
    Cost of goods manufactured
    Cost of finished goods available for sale
    • Less: Direct materials inventory, January 1
    • Less: Direct materials inventory, January 31
    • Less: Finished goods inventory, January 1
    • Less: Finished goods inventory, January 31
    • Less: Work in process inventory, January 1
    • Less: Work in process inventory, January 31
    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
    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
    • Gross profit
    • Income before income tax
    • Interest expense
    • Interest revenue
    • Revenue from sales
    • Administrative expenses
    • Cost of goods sold
    • Income tax expense
    • Interest expense
    • Selling expenses
    • Gross profit
    • Interest revenue
    • Net income
    • Net loss
    • Revenue from sales
    Selling and administrative expenses:
    • Cost of goods sold
    • Income tax expense
    • Interest expense
    • Net loss
    • Selling expenses
    • Administrative expenses
    • Gross profit
    • Income tax expense
    • Interest expense
    • Interest revenue
    Total selling and administrative expenses
    • Income from operations
    • Loss from operations
    Other revenue:
    • Gross profit
    • Interest revenue
    • Interest expense
    • Net income
    • Revenue from sales
    Other expenses:
    • Cost of goods sold
    • Income tax expense
    • Interest expense
    • Net loss
    • Selling expenses
    • Income before income tax
    • Loss before income tax
    • Cost of goods sold
    • Income tax (30% rate)
    • Interest expense
    • Gross profit
    • Net loss
    • Net income
    $

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