In: Accounting
The budget director of Birding Homes & Feeders 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:
Bird house | 15,000 units at $25 per unit |
Bird feeder | 40,000 units at $15 per unit |
Direct materials: | |
Wood | 600 ft. |
Plastic | 1,000 lbs. |
Finished products: | |
Bird house | 1,000 units at $15 per unit |
Bird feeder | 2,500 units at $8 per unit |
Direct materials: | |
Wood | 500 ft. |
Plastic | 1,250 lbs. |
Finished products: | |
Bird house | 1,500 units at $15 per unit |
Bird feeder | 3,000 units at $8 per unit |
In manufacture of Bird House: | |
Wood | 0.80 ft. per unit of product |
Plastic | 0.10 lb. per unit of product |
In manufacture of Bird Feeder: | |
Wood | 0.20 ft. per unit of product |
Plastic | 1.00 lb. per unit of product |
Wood | $2.50 per ft. |
Plastic | $0.80 per lb. |
Bird House: | |
Fabrication Department | 0.40 hr. at $18 per hr. |
Assembly Department | 0.20 hr. at $12 per hr. |
Bird Feeder: | |
Fabrication Department | 0.25 hr. at $18 per hr. |
Assembly Department | 0.10 hr. at $12 per hr. |
Indirect factory wages | $40,000 |
Depreciation of plant and equipment | 20,000 |
Power and light | 10,000 |
Insurance and property tax | 5,000 |
Sales salaries expense | $125,000 |
Advertising expense | 80,000 |
Office salaries expense | 40,000 |
Depreciation expense—office equipment | 4,000 |
Travel expense—selling | 25,000 |
Office supplies expense | 2,500 |
Miscellaneous administrative expense | 3,500 |
Interest revenue | $4,540 |
Interest expense | 3,000 |
Required:
1. Prepare a sales budget for January.
5. Prepare a factory overhead cost budget for January.
Birding Homes & Feeders Inc. Factory Overhead Cost Budget For the Month Ending January 31 |
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$fill in the blank 52 | ||
fill in the blank 54 | ||
fill in the blank 56 | ||
fill in the blank 58 | ||
Total factory overhead cost | $fill in the blank 59 |
6. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $9,000, and work in process at the end of January is estimated to be $10,500. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Birding Homes & Feeders Inc. Cost of Goods Sold Budget For the Month Ending January 31 |
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$fill in the blank 61 | |||
$fill in the blank 63 | |||
Direct materials: | |||
$fill in the blank 65 | |||
fill in the blank 67 | |||
Cost of direct materials available for use | $fill in the blank 68 | ||
fill in the blank 70 | |||
Cost of direct materials placed in production | $fill in the blank 71 | ||
fill in the blank 73 | |||
fill in the blank 75 | |||
Total manufacturing costs | fill in the blank 76 | ||
Total work in process during period | $fill in the blank 77 | ||
fill in the blank 79 | |||
Cost of goods manufactured | fill in the blank 80 | ||
Cost of finished goods available for sale | $fill in the blank 81 | ||
fill in the blank 83 | |||
Cost of goods sold | $fill in the blank 84 |
7. Prepare a selling and administrative expenses budget for January.
Birding Homes & Feeders Inc. Selling and Administrative Expenses Budget For the Month Ending January 31 |
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Selling expenses: | |||
$fill in the blank 86 | |||
fill in the blank 88 | |||
fill in the blank 90 | |||
Total selling expenses | $fill in the blank 91 | ||
Administrative expenses: | |||
$fill in the blank 93 | |||
fill in the blank 95 | |||
fill in the blank 97 | |||
fill in the blank 99 | |||
Total administrative expenses | fill in the blank 100 | ||
Total operating expenses | $fill in the blank 101 |
8. Prepare a budgeted income statement for January. In the Other revenue and expense section, indicate expenses as negative amounts.
Birding Homes & Feeders Inc. Budgeted Income Statement For the Month Ending January 31 |
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---|---|---|---|
$fill in the blank 103 | |||
fill in the blank 105 | |||
$fill in the blank 107 | |||
Operating expenses: | |||
$fill in the blank 109 | |||
fill in the blank 111 | |||
Total operating expenses | fill in the blank 112 | ||
Operating income | $fill in the blank 113 | ||
Other revenue and expense: | |||
$fill in the blank 115 | |||
fill in the blank 117 | fill in the blank 118 | ||
Income before income tax | $fill in the blank 119 | ||
fill in the blank 121 | |||
Net income | $fill in the blank 122 |