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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 2016. You may access the data through the following link:

Estimated sales in December:
	Bird house		3,200 units @ $50/unit
	Bird feeder		3,000 units @ $70/unit
Estimated inventories at December 1:
	Direct materials:
		Wood	200 ft.
		Plastic	240 lbs.
	Finished products:
		Bird house		320 units @ $27/unit
		Bird feeder		270 units @ $40/unit
Desired inventories at December 31:
	Direct materials:
		Wood	220 ft.
		Plastic	200 lbs.
	Finished products:
		Bird house		290 units @ $27/unit
		Bird feeder		250 units @ $41/unit
Direct materials used in production:
	In manufacture of Bird House:
		Wood		0.8 ft./unit of product
		Plastic		0.5 lb./;unit of product
	In manufacture of Bird Feeder:
		Wood		1.2 ft./unit of product
		Plastic		0.75 lb./unit of product
	Anticipated cost of purchases and beginning and ending inventory of direct materials:
		Wood:	$7.00/ft.
		Plastic	$1.00/lb.
	Direct labor requirements:
		Bird House:
			Fabrication Dept.		0.2 hrs. @ $16/hr.
			Assembly Dept.		0.3 hrs. @ $12/hr.
		Bird Feeder:
			Fabrication Dept.		0.4 hrs. @ $16/hr.
			Assembly Dept.		0.35 hrs. @ $12/hr.
	Estimated factory overhead costs for December:
		Indirect factory wages			$75,000
		Depreciation, plant 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 eqp.			600
		Telephone expense-selling			550
		Telephone expense-administrative			250
		Travel expense-sellling			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%

REQUIREMENTS: Based on the data provided, prepare the following budgets for December:

• Sales Budget
• Production Budget
• Direct Materials Purchases Budget
• Direct Labor Cost Budget
• Factory Overhead Cost Budget
• Cost of Goods Sold Budget [Work in Process is estimated to be $29,000 at the beginning of the month and $35,400 at the end of the month]
• Selling & Administrative Expenses Budget, and
• Budgeted Income Statement for the month.

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