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

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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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