Bird House Unlimited, Inc._BUDGETS

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%

13 years ago

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