need help with this problem on how to create a budget income statement 459294
The budget director of Dollie Inc., with the help of the finance department, has compiled the following information for use in creating the budgeted income statement for January 20xx:
a. Estimated sales for January
Luxury dollhouse: 2,000 units at $200 per unit
Standard dollhouse: 3,500 units at $150 per unit
b. Estimated inventories at January 1
Direct materials
Finished products
Plastic: 400 pounds
Luxury dollhouse: 200 units at $98 per unit
Wood: 1,000 pounds
Standard dollhouse: 300 units at $70 per unit
c. Desired inventories at January 31
Direct materials
Finished products
Plastic: 740 pounds
Luxury dollhouse: 170 units at $100 per unit
Wood: 980 pounds
Standard dollhouse: 260 units at $73 per unit
d. Direct materials used in production
To manufacture Luxury dollhouse:
Plastic: 0.8 pounds per unit of product
Wood: 2 pounds per unit of product
To manufacture Standard dollhouse:
Plastic: 0.6 pounds per unit of product
Wood: 1.5 pounds per unit of product
e. Anticipated cost of purchases and beginning and ending inventory of direct materials
Plastic: $5 per pound
Wood: $7 per pound
f. Direct labor requirements
Luxury dollhouse
Molding Department: 0.3 hours at $12 per hour
Assembly Department: 0.5 hours at $10 per hour
Standard dollhouse
Molding Department: 0.2 hours at $12 per hour
Assembly Department: 0.4 hours at $10 per hour
g. Estimated factory overhead costs for January
Indirect factory wages: $95,000
Depreciation of plant and equipment: $20,000
Utilities: $14,000
Insurance and property tax: $4,000
h. Estimated operating expenses for January
Sales salaries expense: $223,600
Advertising expense: $127,000
Office salaries expense: $63,800
Depreciation expense ‘ office equipment: $7,200
Telephone expense ‘ selling: $2,100
Telephone expense ‘ administrative: $550
Travel expense ‘ selling: $40,900
Office supplies expense: $3,500
Miscellaneous administrative expense: $4,600
i. Estimated tax rate: 30%
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