The budget director of Feathered Friends Inc., with the assistance of the contro

Question

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:

Estimated sales for December:

Estimated inventories at December 1:

Desired inventories at December 31:

Direct materials used in production:

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

Direct labor requirements:

Estimated factory overhead costs for December:

Estimated operating expenses for December:

Estimated other income and expense for December:

Estimated tax rate: 30%

Required:

1. Prepare a sales budget for December.

2. Prepare a production budget for December. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

3. Prepare a direct materials purchases budget for December. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

4. Prepare a direct labor cost budget for December.

5. Prepare a factory overhead cost budget for December.

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. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

7. Prepare a selling and administrative expenses budget for December.

8. Prepare a budgeted income statement for December. In the Other revenue and expense section, indicate expenses as negative amounts.

Explanation / Answer

Requirement 1 Sales budget for Decemebr Feathered Friends Inc. Sales Budget For the Month Ending December 31 Unit Sales Unit Selling Total Sales Volume Price Bird house 3200 50 160000 Bird feeder 3000 70 210000 Total revenue from sales 370000 2 Production Budget for December Feathered Friends Inc. Production Budget For the Month Ending December 31 Units Bird House Bird Feeder Expected units to be sold 3200 3000 Desired inventory, December 31 290 250 Total units available 3490 3250 Estimated inventory, December 1 320 270 Total units to be produced 3170 2980 3 Direct Material Purchase Budget for December Feathered Friends Inc. Direct Materials Purchases Budget For the Month Ending December 31 Wood Plastic Total Required units for production: Bird house 2536 1585 Bird feeder 3576 2235 Desired units of inventory, December 31 220 200 Total units available 6332 4020 Estimated units of inventory, December 1 200 240 Total units to be purchased 6132 3780 Unit price 7 1 Total direct materials to be purchased 42924 3780 4 Direct Labor budget for December Feathered Friends Inc. Direct Labor Cost Budget For the Month Ending December 31 Fabrication Assembly Department Total Department Hours required for production: Bird house 634 951 Bird feeder 1192 1043 Total 1826 1994 Hourly rate 16 12 Total direct labor cost 29216 23928 As per policy of chegg we can't answer more than 4 subparts of the questions Kindly rate the answer Thank You

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