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ID: 2401190 • Letter: N
Question
n/ilm/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator; assignment-take&inprog; eBook Budgeted Income Statement and Supporting Budgets The budget director of Birds of a Feather Inc, with the assistance of the controliler, treasurer, production following data for use in developing the budgeted income statement for January a. Estimated sales for January: Calculator manager, and sales manage Bird house 6,000 units at $55 per unit Bird feeder 4,500 units at $75 per unit b. Estimated inventories at January 1: Direct materials: Wood 220 ft Plastic 250 lbs. Finished products: Bird house 300 units at $23 per unit Bird feeder 240 units at $34 per unit c. Desired inventories at January 31: Direct materials Wood 180 ft. Plastic 210 1bs. Finished products: 340 units at $23 per unit Bird house Pre Check My Work 1 more Check My Work uses remaning All work saved. SSIST BAutonExplanation / Answer
3.Direct Material Purchase Budget :-
Wood
Plastic
Total
Required units for Production :
Bird House
(6040 * 0.80)
=4832
(6040 * 0.50)
=3020
Bird Feeder
(4460 * 1.20)
=5352
(4460 * 0.75)
=3345
Plus Desired units of Inventory,January 31
180
210
Total
10364
6575
Less Estimated units of Inventory,January 1
220
250
Total units to be purchased
10144
6325
Unit Price
8
1.2
Total Direct Material to be purchased
81152
7590
88742
Production Budget :-
Bird House
Bird Feeder
Estimated Sales (units)
6000
4500
(+) Desired Ending Inventory, Jan 31
340
200
(-) Estimated Inventory, Jan 1
300
240
Units to be Produced
6040
4460
(4) Direct Labour Cost Budget :-
Fabrication Dept
Assembly Dept
Total
Hours Required for Production :
Bird House
(6040 * 0.20 hrs)
=1208
(6040 * 0.30 hrs)
=1812
Bird Feeder
(4460 * 0.40 hrs)
=1784
(4460 * 0.35 hrs)
=1561
Total
2992
3373
Hourly Rate
15
12
Total Direct Labour cost
44880
40476
85356
Wood
Plastic
Total
Required units for Production :
Bird House
(6040 * 0.80)
=4832
(6040 * 0.50)
=3020
Bird Feeder
(4460 * 1.20)
=5352
(4460 * 0.75)
=3345
Plus Desired units of Inventory,January 31
180
210
Total
10364
6575
Less Estimated units of Inventory,January 1
220
250
Total units to be purchased
10144
6325
Unit Price
8
1.2
Total Direct Material to be purchased
81152
7590
88742
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