Solved by verified expert :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%
