I just need 7 8 Selling and Administrative Expense Budget f

The budget director of Feathered Friends Inc, with the assistance of the controller, trea- surer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for October 2012: a. Estimated sales for October: Bird house............ .. 3,500 units at $45 per unit b. Estimated inventories at October 1: Direct materials: Finished products: 240 ft. Bird house. 300 units at $22 per unit Wood c. Desired inventories at October 31 Direct materials: Finished products: Wood 290 ft Plastic.... 340 Ibs. Bird house....360 units at $22 per unit Bird feeder... 180 units at $34 per unit d. Direct materials used in production: In manufacture of Bird House: In manufacture of Bird Feeder Wood. 0,80 ft. per unit of product Wood 1.20ft per unit of product Plastic. 0.50b per unit of product Plastic e. Anticipated cost of purchases and beginning and ending inventory of direct materials: f. Direct labor requirements: Bird House: 020 hr.at $15 per hr 0.30 hr.at $11 per hr Fabrication Department Bird Feeder: Fabricatión Department 0.35 hr.at $11 per hr B. Estimated factory overhead costs for October: 70,000 Power and light 18,000 Insurance and property tax 55,000 Indirect factory wages Depreciation of plant and equipment 2500 h. Estimated operating expenses for October: Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Telephone expense-selling Telephone expense- -administrative Travel expense-selling Office supplies expense Miscellaneous administrative expense $65,000 15,000 22,000 500 450 150 3,700 350 500

Solution

Ans 1 Estimated Sales Budget For October

Bird House Bird Feeder

Estimated Sales Units 3500 3700  

Ans 2 Estimated Prouction Budget For October

Bird House Bird Feeder

a. Sales Units 3500 3700

b. Closing Stock Units 360 180

c. Opening Stock Units 300 200

d. Units Of Production (a+b-c) 3560 3680

Ans 3 Direct Material Purchase Budget

a. Units Required For Production

Wood Plastic   

a. For Bird House

Production Units 3560 3560*0.80 =2848 Ft 3560*0.50=1780 lbs

b. For Bird Feeder

Production Units 3680 Units 3680*1.20 = 4416 Ft 3680*0.75 = 2760 lbs

Total Units Required For Prodution(a+b) 7264 Ft 4540 lbs  

b. Raw Material Purchase Required

Wood   Plastic

1. Units For Production 7264 Ft 4540 lbs

2. Closing Stock 290 Ft 340 lbs

3. Opening Stock 240 Ft 360 lbs

4. Raw Material Purchase (1+2-3) 7314 Ft 4520 lbs

5. Cost Per Unit $6 Per Ft $0.80 Per lb

6. Purchase Cost (4*5) $43884 $3616

Ans 4   Direct Labour Cost Budget

  Fabrication Department   Assembly Department

A. Bird House

1. Hours Required 3560*0.20 = 712Hr 3560*0.30=1068 Hr

2. Cost Per Hr $15 $11

3. Labour Cost(1*2) $ 10680 $ 11748

B. Bird Feeder

1. Hours Required 3680*0.40 = $1472 3680*0.35 = $1288

2. Cost Per Hr $ 15 $ 11

3. Labour Cost (1*2) $22080 $14168

C. Total Labour Cost : Fabrication Department =10680+22080 = $32760

Assembly Department =14168+11748 = $25916

Ans 5 Factory Overhead Cost Budget

a. Indirect Factory Wages $ 70000

b. Depreciation Of Plant and Equipment $18000

c. Power and Light $5000

d.Insurance and Property Tax $ 2500

Total Factory Overheads(a+b+c+d) $95500

Ans 7 Selling and Administrative Expenses

a. Sales Salaries Expenses $65000

b. Advertising Expense $15000

c. Telephone Expenses-Selling $450

d. Telephone Expenses - Administrative $150

e.Travelling Expenses Selling $3700

f.Miscellaneous Administrative Expenses $ 500

Total Selling and Administrative Expenses(a to f) $84800

Ans 6 . Cost Of Goods Sold Budget

WN-1 Calculation Of Cost Of Units Produced

a. Opening WIP Cost $ 27000

b..Cost For Units Introduced In Production

1. Direct Material Cost   

a .Wood (3560*0.80*6+3680*1.20*6) = $43584

b. Plastic (3560*0.50*0.80+3680*0.75*0.80) =$3632 $47216

2. Direct Labour Cost (Calculated Part 4) $ 58676

3. Factory Overheads (Calculated Part 5) $95500

Total Cost For Units Introduced (1+2+3) $ 201392

c. Closing WIP $32400

d. Total Cost Of Units Produced (a+b-c) $ 195992

WN -2 TOTAL COST OF GOODS SOLD

A.   Opening Cost Of Finished Goods (1+2) $ 13200

1.Bird House =300 * 22 =$6600

2.Bird Feeder =200*33 = $ 6600

B. Cost Of Goods Produced(WN-1) $ 195992

C. Closing Cost Of Finished Goods(1+2) $ 14040

1. Bird House =360*22= $7920

2. Bird Feeder =180*34 =$6120

D. Cost Of Goods Sold (A+B-C ) $195152

Ans8. Budgeted Income Statement For October

1.. Sales Revenue(a+b) $ 398000

a.Bird House (3500*45)=$157500

b. Bird Feeder (3700*65)=$240500

2.Cost Of Goods Sold(Ans 6) $195152

3. Selling and Administrative Exp $84800

4. Operational Expenses( Office Salaries+Depreciation+Offies Supplies) $22850

5. Net Interest Income ( 170-118) $52

6. Income Before Taxes (1+5-2-3-4) $ 95250

7. Taxes ( 6*30% ) (95250*30% ) $28575

8. Budgeted Income (6-7) $66675