Bird House Unlimited, Inc._BUDGETS

$55.00

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.
Estimated
sales for November
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)
Wood 2600 feet
Plastic 3200 pounds
Estimated
inventories at November 30th(ending)
Wood 3500 feet
Plastic 2800 pounds
Direct
materials used in production:
In the
manufacture of a Bird House:
Wood 0.80 feet per unit of product
Plastic 0.50 pounds per unit of product
In the
manufacture of a Bird Feeder:
Wood 1.20 feet per unit of product
Plastic 0.75 pounds per unit of product
Estimated
cost of direct materials
Wood $6.00 per feet
Plastic $0.90 per pound
Work
in process-given in total of the 2 products
Estimated
inventories at November 1(beginning)
$2,000
Estimated
inventories at November 30th(ending)
$3,000
Finished Goods
Estimated
inventories at November 1(beginning)
Bird House 4,000 units at $13 per unit
Bird Feeder 2,500 units at $14 per unit
Estimated
inventories at November 30th(ending)
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
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
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
Interest Revenue $14,000
Interest Expense 10,000
Estimated tax rate 30%

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