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Budgeted Income Statement and Supporting Budgets

The budget director of Feathered Friends Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for December:

Estimated sales for December:

Bird house$3,200$ units at $$50$ per unitBird feeder$3,000$ units at $$70$ per unit

Estimated inventories at December $1$:

Direct materials:Wood$200$ ft$.$Plastic$240$ lbs$.$Finished products:Bird house$320$ units at $$27$ per unitBird feeder$270$ units at $$40$ per unit

Desired inventories at December $31$:

Direct materials:Wood$220$ ft$.$Plastic$200$ lbs$.$Finished products:Bird house$290$ units at $$27$ per unitBird feeder$250$ units at $$41$ per unit

Direct materials used in production:

In manufacture of Bird House:Wood$0\mathrm{.}80$ ft$.$ per unit of productPlastic$0\mathrm{.}50$ lb$.$ per unit of productIn manufacture of Bird Feeder:Wood$1\mathrm{.}20$ ft$.$ per unit of productPlastic$0\mathrm{.}75$ lb$.$ per unit of product

Anticipated cost of purchases and beginning and ending inventory of direct materials:

Wood$$7\mathrm{.}00$ per ft$.$Plastic$$1\mathrm{.}00$ per lb$.$

Direct labor requirements:

Bird House:Fabrication Department$0\mathrm{.}20$ hr$.$ at $$16$ per hr$.$Assembly Department$0\mathrm{.}30$ hr$.$ at $$12$ per hr$.$Bird Feeder:Fabrication Department$0\mathrm{.}40$ hr$.$ at $$16$ per hr$.$Assembly Department$0\mathrm{.}35$ hr$.$ at $$12$ per hr$.$

Estimated factory overhead costs for December:

Indirect factory wages$$75,000$Depreciation of plant and equipment$23,000$Power and light$6,000$Insurance and property tax$5,000$

Estimated operating expenses for December:

Sales salaries expense$$70,000$Advertising expense$18,000$Office salaries expense$21,000$Depreciation expense$$office equipment$600$Telephone expense$$selling$550$Telephone expense$$administrative$250$Travel expense$$selling$4,000$Office supplies expense$200$Miscellaneous administrative expense$400$

Estimated other income and expense for December:

Interest revenue$$200$Interest expense$122$

Estimated tax rate: $30\%$

I need help with Question $5-8$ I have $1-5.$ Thank You!

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