Description
| The budget director for Bird House Unlimited, Inc., has gathered the following data for use in developing the budgeted income statement for November 20XX. |
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| Estimated sales for November |
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| Bird House | 29,000 | units | at | $33 | per unit | ||
| Bird Feeder | 25,000 | units | at | $37 | per unit | ||
| Direct materials | |||||||
| Estimated inventories at November 1(beginning) |
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| Wood | 2600 | feet | |||||
| Plastic | 3200 | pounds | |||||
| Estimated inventories at November 30th(ending) |
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| Wood | 3500 | feet | |||||
| Plastic | 2800 | pounds | |||||
| Direct materials used in production: |
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| In the manufacture of a Bird House: |
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| Wood | 0.80 | feet per unit of product | |||||
| Plastic | 0.50 | pounds per unit of product | |||||
| In the manufacture of a Bird Feeder: |
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| Wood | 1.20 | feet per unit of product | |||||
| Plastic | 0.75 | pounds per unit of product | |||||
| Estimated cost of direct materials |
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| Wood | $6.00 | per feet | |||||
| Plastic | $0.90 | per pound | |||||
| Work in process-given in total of the 2 products |
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| Estimated inventories at November 1(beginning) |
$2,000 | ||||||
| Estimated inventories at November 30th(ending) |
$3,000 | ||||||
| Finished Goods | |||||||
| Estimated inventories at November 1(beginning) |
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| Bird House | 4,000 | units | at | $13 | per unit | ||
| Bird Feeder | 2,500 | units | at | $14 | per unit | ||
| Estimated inventories at November 30th(ending) |
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| Bird House | 5,000 | units | at | $13 | per unit | ||
| Bird Feeder | 2,000 | units | at | $14 | per unit | ||
| Direct Labor Requirements: | |||||||
| Bird House | |||||||
| Fabrication Department | 0.25 | hour | at | $15 | per hour | ||
| Assembly Department | 0.3 | hour | at | $12 | per hour | ||
| Bird Feeder | |||||||
| Fabrication Department | 0.45 | hour | at | $15 | per hour | ||
| Assembly Department | 0.35 | hour | at | $12 | per hour | ||
| Estimated Manufacturing Overhead Costs for November |
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| Indirect Factory Wages | $2,000 | ||||||
| Depreciation of Plant and Equipment |
1,000 | ||||||
| Power and Light | 4,000 | ||||||
| Insurance and property tax | 3,000 | ||||||
| Estimated operating expenses for November |
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| Sales salaries expense | $2,000 | ||||||
| Advertising expense | 10,000 | ||||||
| Office salaries expense | 5,000 | ||||||
| Depreciation expense-office equipment |
4,000 | ||||||
| Telephone expense-selling | 5,000 | ||||||
| Telephone expense-administrative |
2,000 | ||||||
| Travel expense-selling | 2,000 | ||||||
| Office supplies expense | 3,000 | ||||||
| Miscellaneous Administrative expense |
6,000 | ||||||
| Estimated other income and expense for November |
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| Interest Revenue | $14,000 | ||||||
| Interest Expense | 10,000 | ||||||
| Estimated tax rate | 30% |
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