Solution-Prepare a sales budget for november

Prepare a sales budget for november

Assignment Help Accounting Basics

Reference no: EM131581203

Project

You need to use cell references in the development of your budgets. You must use this worksheet to reference the data that is being inputted onto the budgets on the solution worksheet.

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	28,600 units at $33 per unit
Bird Feeder	24,000 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	0.70 pounds per unit of product

Estimated cost of direct materials
Wood	$6.00 per feet
Plastic	$0.80 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 $14 per hour
	Assembly Department	0.3 hour at $11 per hour
Bird Feeder
	Fabrication Department	0.45 hour at $14 per hour
	Assembly Department	0.35 hour at $11 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%

Project 4 Objectives:
1. Develop operating budgets
2. Analyze the cash flow of the company.
3. Analyze how changes in cost or revenue impact the budgets.
4. Provide recommendations to management.

Questions:

1. Prepare a sales budget for November
2. Prepare a production budget for November.
3. Prepare a supporting schedule to determine required material for production and a direct materials purchase budget for November
4. Prepare a direct labor cost budget for November.
5. Prepare a factory overhead cost budget for November
6. Prepare a cost of goods sold budget for November.
7. Prepare a selling and administrative budget for November, set up based on categorization of expenses into selling and administrative costs.
8. Prepare a budgeted income statement for November.
9. What if the company decides to start a new advertising campaign

Reference no: EM131581203

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Prepare a sales budget for november

Reference no: EM131581203

Reference no: EM131581203

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