AN: Q6 Q7 Q8 The budget director of Birds and Beyond, 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 2021:Estimated sales for January:Birdhouse 7.500 units at $66 per unitBird feeder 5,000 units at $82 per unit Estimated inventories at January 1: Direct Materials: Finished Products: Wood: 198 ft. Birdhouse: 500 units at $28 per unit. Plastic: 420 lbs. Bird feeder: 210 units at $40 per unit. Desired inventories at January 31: Direct Materials: Finished Products: Wood: 220 ft. Birdhouse: 400 units at $28 per unit. Plastic: 340 lbs. Bird feeder: 250 units at $40 per unit. Direct materials used in production: In Mfg. of the Birdhouse: In Mfg. of the Bird Feeder: Wood: 0.80 ft. per unit. 1.20 ft. per unit. Plastic: 0.50 lb. per unit. 0.75 lb. per unit. Anticipated cost of purchases and beginning and ending inventory of direct materials:Wood: $9 per ft. Plastic: $1.40 per lb.Direct labor requirements: Birdhouse: Fabrication Department: 0.25 hr. at $20 per hour. Assembly Department: 0.30 hr. at $15 per hour.Bird Feeder: Fabrication Department: 0.40 hr. at $20 per hour. Assembly Department: 0.35 hr. at $15 per hour. Estimated factory overhead costs for January: Indirect Factory Wages: $92,000 Power and Light: $10,100Depreciation-Plant and Equip.: $34,000 Insurance and Property Tax: $2,800 Estimated operating expenses for January: Sales Salaries Expense: $85,100Advertising Expense: 17,600Office Salaries Expense: 19,200Depreciation Expense-Office Equipment 1,100Telephone Expense-Selling: 1,000Telephone Expense-Administrative: 400Travel Expense-Selling: 3,800Office Supplies Expense: 350Miscellaneous Administrative Expense: 250 Estimated other income and expense for January: Interest Revenue: $450 Interest Expense: $294 Estimated tax rate: 25% InstructionsPrepare a sales budget for January.Prepare a production budget for January.Prepare a direct materials purchases budget for January.Prepare a direct labor cost budget for January.Prepare a factory overhead cost budget for January.Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $33,600, and work in process at the end of January is estimated to be $41,200.Prepare a selling and administrative expenses budget for January.Prepare a budgeted income statement for January. Question 1Birds and Beyond, Inc.Sales BudgetFor the Month Ending January 31, 2021Unit Sales VolumeUnit Selling Price$66Total SalesBird house7,500$495,000Bird feeder5,000$82410,000Total revenue from sales$905 000Question 2Birds and Beyond, Inc.Production BudgetFor the Month Ending January 31, 2021Bird HouseBird FeederExpected units to be soldPlus desired inventory, January 31, 20217,5005,000400250Total7,9005,250Less estimated inventory, January 1, 2021Total units to be produced500210Z4005,040Question 3Birds and Beyond, Inc.Direct Materials Purchases BudgetFor the Month Ending Jan. 31, 2021WoodPlasticTotalRequired units for production:Bird houseBird feeder5,9203,7006,0483,780Plus desired units of inventory, 1/31/2021TotalLess estimated units of inventory, 1/1/2021Total units to be purchasedUnit priceTotal direct materials to be purchased22034012,1887,82019842011,9907,400$9.00$1.40$107,910$10,360$118 270Question 4Birds and Beyond, Inc.Direct Labor Cost BudgetFor the Month Ending January 31, 2021Fabrication Dept.Assembly Dept.TotalHours required for production:Bird houseBird feederTotal Hours RequiredHourly rateTotal direct labor cost1,8502,2202.0161.7643,8663,984$20$15$77,320$59,760$137 080Birds and Beyond, Inc.Factory Overhead Cost BudgetFor the Month Ending January 31, 2021Indirect factory wagesDepreciation of plant and equipmentPower and lightInsurance and property taxTotal Question 6Birds and Beyond, Inc.Cost of Goods Sold BudgetFor the Month Ending January 31, 2021Finished goods inventory, January 1, 2021Work in process inventory, January 1, 2021Direct materials:Direct materials inventory, January 1, 2021Direct materials purchasesCost of direct materials available for useLess direct materials inventory, Jan. 31, 2021Cost of direct materials placed in productionDirect laborFactory overheadTotal manufacturing costsTotal work in process during periodLess work in process, January 31, 2021Cost of goods manufacturedCost of finished goods available for saleLess finished goods inventory, Jan. 31, 2021Cost of goods soldQuestion 7Birds and Beyond, Inc.Selling and Administrative Expenses BudgetFor the Month Ending January 31, 2021Selling expenses:Sales salaries expenseAdvertising expenseTelephone expense-sellingTravel expense-sellingTotal selling expensesAdministrative expenses:Office salaries expenseDepreciation expense-office equipmentTelephone expense-administrativeOffice supplies expenseMiscellaneous administrative expenseTotal administrative expensesTotal operating expensesQuestion 8Birds and Beyond, Inc.Budgeted Income StatementFor the Month Ending January 31, 2021Revenue from salesCost of goods soldGross profitOperating expenses:Selling expensesAdministrative expensesTotal operating expensesIncome from operationsOther income:Interest revenueOther expenses:Interest expenseIncome before income taxIncome tax expense (25% rate)Net income

The budget is prepared to estimate the requirements for the future period.

Estimated sales for January: Birdhouse 7.500 units at $66 per unit Bird feeder 5,000 units at $82 per unit Estimated inventories at January 1: Direct Materials: Finished Products: Wood: 198 ft. Birdhouse: 500 units at $28 per unit. Plastic: 420 lbs. Bird feeder: 210 units at $40 per unit. Desired inventories at January 31: Direct Materials: Finished Products: Wood: 220 ft. Birdhouse: 400 units at $28 per unit. Plastic: 340 lbs. Bird feeder: 250 units at $40 per unit. Direct materials used in production: In Mfg. of the Birdhouse: In Mfg. of the Bird Feeder: Wood: 0.80 ft. per unit. 1.20 ft. per unit. Plastic: 0.50 lb. per unit. 0.75 lb. per unit. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood: $9 per ft. Plastic: $1.40 per lb. Direct labor requirements: Birdhouse: Fabrication Department: 0.25 hr. at $20 per hour. Assembly Department: 0.30 hr. at $15 per hour. Bird Feeder: Fabrication Department: 0.40 hr. at $20 per hour. Assembly Department: 0.35 hr. at $15 per hour. Estimated factory overhead costs for January: Indirect Factory Wages: $92,000 Power and Light: $10,100 Depreciation-Plant and Equip.: $34,000 Insurance and Property Tax: $2,800 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 Estimated other income and expense for January: Interest Revenue: $450 Interest Expense: $294 Estimated tax rate: 25% Instructions Prepare a sales budget for January. Prepare a production budget for January. Prepare a direct materials purchases budget for January. Prepare a direct labor cost budget for January.

Estimated sales for January: Birdhouse 7.500 units at $66 per unit Bird feeder 5,000 units at $82 per unit Estimated inventories at January 1: Direct Materials: Finished Products: Wood: 198 ft. Birdhouse: 500 units at $28 per unit. Plastic: 420 lbs. Bird feeder: 210 units at $40 per unit. Desired inventories at January 31: Direct Materials: Finished Products: Wood: 220 ft. Birdhouse: 400 units at $28 per unit. Plastic: 340 lbs. Bird feeder: 250 units at $40 per unit. Direct materials used in production: In Mfg. of the Birdhouse: In Mfg. of the Bird Feeder: Wood: 0.80 ft. per unit. 1.20 ft. per unit. Plastic: 0.50 lb. per unit. 0.75 lb. per unit. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood: $9 per ft. Plastic: $1.40 per lb. Direct labor requirements: Birdhouse: Fabrication Department: 0.25 hr. at $20 per hour. Assembly Department: 0.30 hr. at $15 per hour. Bird Feeder: Fabrication Department: 0.40 hr. at $20 per hour. Assembly Department: 0.35 hr. at $15 per hour. Estimated factory overhead costs for January: Indirect Factory Wages: $92,000 Power and Light: $10,100 Depreciation-Plant and Equip.: $34,000 Insurance and Property Tax: $2,800 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 Estimated other income and expense for January: Interest Revenue: $450 Interest Expense: $294 Estimated tax rate: 25% Instructions Prepare a sales budget for January. Prepare a production budget for January. Prepare a direct materials purchases budget for January. Prepare a direct labor cost budget for January.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 4E: Prepare a cost of goods sold budget for the Crest Hills Manufacturing Co. for the year ended...

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AN: Q6 Q7 Q8

The budget director of Birds and Beyond, 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 2021:

Estimated sales for January:

Birdhouse 7.500 units at $66 per unit

Bird feeder 5,000 units at $82 per unit

Estimated inventories at January 1:

Direct Materials: Finished Products:

Wood: 198 ft. Birdhouse: 500 units at $28 per unit.

Plastic: 420 lbs. Bird feeder: 210 units at $40 per unit.

Desired inventories at January 31:

Direct Materials: Finished Products:

Wood: 220 ft. Birdhouse: 400 units at $28 per unit.

Plastic: 340 lbs. Bird feeder: 250 units at $40 per unit.

Direct materials used in production:

In Mfg. of the Birdhouse: In Mfg. of the Bird Feeder:

Wood: 0.80 ft. per unit. 1.20 ft. per unit.

Plastic: 0.50 lb. per unit. 0.75 lb. per unit.

Anticipated cost of purchases and beginning and ending inventory of direct materials:

Wood: $9 per ft. Plastic: $1.40 per lb.

Direct labor requirements:

Birdhouse:

Fabrication Department: 0.25 hr. at $20 per hour.

Assembly Department: 0.30 hr. at $15 per hour.

Bird Feeder:

Fabrication Department: 0.40 hr. at $20 per hour.

Assembly Department: 0.35 hr. at $15 per hour.

Estimated factory overhead costs for January:

Indirect Factory Wages: $92,000 Power and Light: $10,100

Depreciation-Plant and Equip.: $34,000 Insurance and Property Tax: $2,800

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

Estimated other income and expense for January:

Interest Revenue: $450 Interest Expense: $294

Estimated tax rate: 25%

Instructions

Prepare a sales budget for January.
Prepare a production budget for January.
Prepare a direct materials purchases budget for January.
Prepare a direct labor cost budget for January.
Prepare a factory overhead cost budget for January.
Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $33,600, and work in process at the end of January is estimated to be $41,200.
Prepare a selling and administrative expenses budget for January.
Prepare a budgeted income statement for January.

Question 1
Birds and Beyond, Inc.
Sales Budget
For the Month Ending January 31, 2021
Unit Sales Volume
Unit Selling Price
$66
Total Sales
Bird house
7,500
$495,000
Bird feeder
5,000
$82
410,000
Total revenue from sales
$905 000
Question 2
Birds and Beyond, Inc.
Production Budget
For the Month Ending January 31, 2021
Bird House
Bird Feeder
Expected units to be sold
Plus desired inventory, January 31, 2021
7,500
5,000
400
250
Total
7,900
5,250
Less estimated inventory, January 1, 2021
Total units to be produced
500
210
Z400
5,040
Question 3
Birds and Beyond, Inc.
Direct Materials Purchases Budget
For the Month Ending Jan. 31, 2021
Wood
Plastic
Total
Required units for production:
Bird house
Bird feeder
5,920
3,700
6,048
3,780
Plus desired units of inventory, 1/31/2021
Total
Less estimated units of inventory, 1/1/2021
Total units to be purchased
Unit price
Total direct materials to be purchased
220
340
12,188
7,820
198
420
11,990
7,400
$9.00
$1.40
$107,910
$10,360
$118 270
Question 4
Birds and Beyond, Inc.
Direct Labor Cost Budget
For the Month Ending January 31, 2021
Fabrication Dept.
Assembly Dept.
Total
Hours required for production:
Bird house
Bird feeder
Total Hours Required
Hourly rate
Total direct labor cost
1,850
2,220
2.016
1.764
3,866
3,984
$20
$15
$77,320
$59,760
$137 080
Birds and Beyond, Inc.
Factory Overhead Cost Budget
For the Month Ending January 31, 2021
Indirect factory wages
Depreciation of plant and equipment
Power and light
Insurance and property tax
Total

Question 6
Birds and Beyond, Inc.
Cost of Goods Sold Budget
For the Month Ending January 31, 2021
Finished goods inventory, January 1, 2021
Work in process inventory, January 1, 2021
Direct materials:
Direct materials inventory, January 1, 2021
Direct materials purchases
Cost of direct materials available for use
Less direct materials inventory, Jan. 31, 2021
Cost of direct materials placed in production
Direct labor
Factory overhead
Total manufacturing costs
Total work in process during period
Less work in process, January 31, 2021
Cost of goods manufactured
Cost of finished goods available for sale
Less finished goods inventory, Jan. 31, 2021
Cost of goods sold
Question 7
Birds and Beyond, Inc.
Selling and Administrative Expenses Budget
For the Month Ending January 31, 2021
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
Question 8
Birds and Beyond, Inc.
Budgeted Income Statement
For the Month Ending January 31, 2021
Revenue from sales
Cost of goods sold
Gross profit
Operating expenses:
Selling expenses
Administrative expenses
Total operating expenses
Income from operations
Other income:
Interest revenue
Other expenses:
Interest expense
Income before income tax
Income tax expense (25% rate)
Net income

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