Question Details

(Solution Download) Budgeted Income Statement and Supporting Budgets The budget director of Feathered Friends Inc., with


 

 

 

 

 

 

 

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 2014:

 

Estimated sales for December:

 


 

waac25h_ch22_pr22_3a1.gif

 

Estimated inventories at December 1:

 


 

waac25h_ch22_pr22_3a2.gif

 

Desired inventories at December 31:

 


 

waac25h_ch22_pr22_3a3.gif

 

Direct materials used in production:

 


 

waac25h_ch22_pr22_3a4.gif

 

Anticipated cost of purchases and beginning and ending inventory

 

of direct materials:

 


 

waac25h_ch22_pr22_3a5.gif

 

Direct labor requirements:

 


 

waac25h_ch22_pr22_3a6.gif

 

Estimated factory overhead costs for December:

 


 

waac25h_ch22_pr22_3a7.gif

 

Estimated operating expenses for December:

 


 

waac25h_ch22_pr22_3a8.gif

 

Estimated other income and expense for December:

 


 

waac25h_ch22_pr22_3a9.gif

 

Estimated tax rate: 30%

 

Required:

 

1. Prepare a sales budget for December.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feathered Friends

 

Inc.

 

Sales Budget

 

For the Month Ending December 31, 2014

Unit Sales

 

Volume

Unit Selling

 

Price

Total Sales
Bird house
Bird feeder
Total revenue from sales

 

2. Prepare a production budget for

 

December.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feathered Friends

 

Inc.

 

Production Budget

 

For the Month Ending December 31, 2014

Units
Bird HouseBird Feeder
Expected units to be sold
Plus desired inventory, December

 

31, 2014

Total
Less estimated inventory, December

 

1, 2014

Total units to be produced

 

3. Prepare a direct materials purchases budget

 

for December.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feathered Friends

 

Inc.

 

Direct Materials Purchases Budget

 

For the Month Ending December 31, 2014

WoodPlasticTotal
Required units for production:
Bird house
Bird feeder
Plus desired units of inventory,

 

December 31, 2014

Total
Less estimated units of inventory,

 

December 1, 2014

Total units to be purchased
Unit price
Total direct materials to be

 

purchased

 

4. Prepare a direct labor cost budget for

 

December.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feathered Friends

 

Inc.

 

Direct Labor Cost Budget

 

For the Month Ending December 31, 2014

Fabrication

 

Department

Assembly DepartmentTotal
Hours required for

 

production:

Bird house
Bird feeder
Total
Hourly rate
Total direct labor

 

cost

 

5. Prepare a factory overhead cost budget for

 

December.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feathered Friends

 

Inc.

 

Factory Overhead Cost Budget

 

For the Month Ending December 31, 2014

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

 

December. Work in process at the beginning of December is estimated

 

to be $29,000, and work in process at the end of December is

 

estimated to be $35,400.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feathered Friends

 

Inc.

 

Cost of Goods Sold Budget

 

For the Month Ending December 31, 2014

SelectDirect materials inventory,

 

December 1, 2014Direct materials inventory, December 31, 2014Direct

 

materials purchasesFactory OverheadFinished goods inventory,

 

December 1, 2014Finished goods inventory, December 31, 2014Item

 

51

SelectDirect materials inventory,

 

December 1, 2014Direct materials inventory, December 31, 2014Direct

 

materials purchasesFactory OverheadWork in process inventory,

 

December 1, 2014Work in process inventory, December 31, 2014Item

 

53

Direct materials:
SelectDirect

 

materials inventory, December 1, 2014Direct materials inventory,

 

December 31, 2014Finished goods inventory, December 1, 2014Finished

 

goods inventory, December 31, 2014Work in process inventory,

 

December 1, 2014Work in process inventory, December 31, 2014Item

 

55

SelectDirect

 

laborDirect materials purchasesFactory overheadFinished goods

 

inventory, December 31, 2014Work in process inventory, December 1,

 

2014Work in process inventory, December 31, 2014Item 57

Cost of direct

 

materials available for use

SelectLess:

 

Direct materials inventory, December 1, 2014Less: Direct materials

 

inventory, December 31, 2014Less: Finished goods inventory,

 

December 1, 2014Less: Finished goods inventory, December 31,

 

2014Less: Work in process inventory, December 1, 2014Less: Work in

 

process inventory, December 31, 2014Item 60

Cost of direct

 

materials placed in production

SelectDirect laborDirect materials

 

purchasesFinished goods inventory, December 1, 2014Finished goods

 

inventory, December 31, 2014Work in process inventory, December 1,

 

2014Work in process inventory, December 31, 2014Item 63

SelectDirect materials

 

purchasesFactory overheadFinished goods inventory, December 1,

 

2014Finished goods inventory, December 31, 2014Work in process

 

inventory, December 1, 2014Work in process inventory, December 31,

 

2014Item 65

Total manufacturing costs
Total work in process during the

 

period

SelectLess: Direct materials

 

inventory, December 1, 2014Less: Direct materials inventory,

 

December 31, 2014Less: Finished goods inventory, December 1,

 

2014Less: Finished goods inventory, December 31, 2014Less: Work in

 

process inventory, December 1, 2014Less: Work in process inventory,

 

December 31, 2014Item 69

Cost of goods manufactured
Cost of finished goods available

 

for sale

SelectLess: Direct materials

 

inventory, December 1, 2014Less: Direct materials inventory,

 

December 31, 2014Less: Finished goods inventory, December 1,

 

2014Less: Finished goods inventory, December 31, 2014Less: Work in

 

process inventory, December 1, 2014Less: Work in process inventory,

 

December 31, 2014Item 73

Cost of goods sold

 

7. Prepare a selling and administrative

 

expenses budget for December.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feathered Friends

 

Inc.

 

Selling and Administrative Expenses Budget

 

For the Month Ending December 31, 2014

Selling expenses:
Sales salaries expense
Advertising expense
Telephone expenseAc???selling
Travel expenseAc???selling
Total selling

 

expenses

Administrative

 

expenses:

Office salaries expense
Depreciation expenseAc???office

 

equipment

Telephone

 

expenseAc???administrative

Office supplies expense
Miscellaneous administrative

 

expense

Total administrative

 

expenses

Total operating

 

expenses

 

8. Prepare a budgeted income statement for

 

December.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feathered Friends

 

Inc.

 

Budgeted Income Statement

 

For the Month Ending December 31, 2014

SelectGross

 

profitIncome before income taxInterest expenseInterest

 

revenueRevenue from salesItem 88

SelectAdministrative

 

expensesCost of goods soldIncome tax expenseInterest expenseSelling

 

expensesItem 90

SelectGross

 

profitInterest revenueNet incomeNet lossRevenue from salesItem

 

92

Operating

 

expenses:

SelectCost of goods soldIncome tax

 

expenseInterest expenseNet lossSelling expensesItem 94

SelectAdministrative expensesGross

 

profitIncome tax expenseInterest expenseInterest revenueItem

 

96

Total operating expenses
SelectIncome from

 

operationsLoss from operationsItem 99

Other income:
SelectGross profitInterest

 

revenueInterest expenseNet incomeRevenue from salesItem 101

Other expenses:
SelectCost of goods soldIncome tax

 

expenseInterest expenseNet lossSelling expensesItem 103

SelectIncome before

 

income taxLoss before income taxItem 106

SelectCost of goods

 

soldIncome tax expense (30% rate)Interest expenseItem 108

SelectGross profitNet

 

lossNet incomeItem 110

 

 

Hide Feedback

 

Partially Correct

 

Check My Work Feedback

 

The direct materials cost budget, the direct labor cost budget,

 

and the factory overhead budget each use the level of production

 

from the production budget to estimate costs.

 

The cost of goods sold budget combines the budgeted costs from

 

the direct labor, direct materials, and factory overhead budgets

 

with estimated beginning and ending inventory to estimate a total

 

cost of goods sold.

 

Estimated sales from the sales budget, estimated cost of goods

 

sold from the cost of goods sold budget, and estimated selling and

 

administrative expenses from the selling and administrative expense

 

budget are used to prepare a budgeted income statement.

 

Learning Objective 4.

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Dec 08, 2020

PRICE: $15

Solution~000652147654154.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Dec 08, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now