Bird House Unlimited, Inc._BUDGETS

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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 House29,000unitsat$33per unit
Bird Feeder25,000unitsat$37per unit
Direct materials
Estimated inventories at November 1(beginning)
Estimated inventories at November 30th(ending)
Direct materials used in production:
In the manufacture of a Bird House:
Wood0.80feet per unit of product
Plastic0.50pounds per unit of product
In the manufacture of a Bird Feeder:
Wood1.20feet per unit of product
Plastic0.75pounds per unit of product
Estimated cost of direct materials
Wood$6.00per feet
Plastic$0.90per 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 House4,000unitsat$13per unit
Bird Feeder2,500unitsat$14per unit
Estimated inventories at November 30th(ending)
Bird House5,000unitsat$13per unit
Bird Feeder2,000unitsat$14per unit
Direct Labor Requirements:
Bird House
Fabrication Department0.25hourat$15per hour
Assembly Department0.3hourat$12per hour
Bird Feeder
Fabrication Department0.45hourat$15per hour
Assembly Department0.35hourat$12per hour
Estimated Manufacturing Overhead Costs for November
Indirect Factory Wages$2,000
Depreciation of Plant and Equipment1,000
Power and Light4,000
Insurance and property tax3,000
Estimated operating expenses for November
Sales salaries expense$2,000
Advertising expense10,000
Office salaries expense5,000
Depreciation expense-office equipment4,000
Telephone expense-selling5,000
Telephone expense-administrative2,000
Travel expense-selling2,000
Office supplies expense3,000
Miscellaneous Administrative expense6,000
Estimated other income and expense for November
Interest Revenue$14,000
Interest Expense10,000
Estimated tax rate30%

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