eBook Calculator Budgeted Income Statement and Supporting Budgets The budget dir
ID: 2540839 • Letter: E
Question
eBook Calculator 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: a. Estimated sales for December: 3,200 units at $50 per unit 3,000 units at $70 per unit Bird house Bird feeder b. Estimated inventories at December 1: Direct materials: Wood 200 ft. Plastic 240 tbs. Finished products: 320 units at $27 per unit 270 units at $40 per unit Bird house Bird feeder c. Desired inventories at December 31: Direct materials: 220 ft. Wood 200 lbs. Plastic Finished oroducts: 2:44 PMExplanation / Answer
Solution:
Part 1 --- Sales Budget
Sales Budget
Unit Sales Volume
Unit Selling Price
Total Sales
Bird House
3200
$50
$160,000
Bird Feeder
3000
$70
$210,000
Total Revenue from Sales
$370,000
Part 2 – Production Budget
Production Budget
Units
Bird House
Bird Feeder
Expected Units to be sold
3200
3000
Plus: Desired Inventory December 31
290
250
Total Need
3490
3250
Less: Estimated inventory December 1
320
270
Total Units to be produced
3170
2980
Part 3 – Direct materials purchases budget
Direct Materials Purchases Budget
Wood
Plastic
Total
Units required for production:
Bird House
2536
(3170*0.80)
1585
(3170*0.50)
Bird Feeder
3576
(2980*1.20)
2235
(2980*0.75)
Plus: Desired Inventory December 31
220
200
Total
6332
4020
Less: Estimated inventory December 1
200
240
Total units to be purchased
6132
3780
Unit Price
$7
$1
Total direct materials to be purchased
$42,924
$3,780
$46,704
Part 4 – Direct Labor Cost Budget
Direct labor Cost budget
Fabrication Dept.
Assembly Department
Total
Hours required for Production:
Bird house
634
(3170*0.20)
951
(3170*0.30)
Bird Feeder
1192
(2980*0.40)
1043
(2980*0.35)
Total
1826
1994
Hourly Rate
$16
$12
Total Direct labor cost
$29,216
$23,928
$53,144
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Pls ask separate question for remaining parts.
Sales Budget
Unit Sales Volume
Unit Selling Price
Total Sales
Bird House
3200
$50
$160,000
Bird Feeder
3000
$70
$210,000
Total Revenue from Sales
$370,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.