Could I get some help with the selling and administrative expenses budget and bu
ID: 2376200 • Letter: C
Question
Could I get some help with the selling and administrative expenses budget and budgeted income statement for this question. I believe I have completed most of it, but have a few issues at the end.<?xml:namespace prefix = o />
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 October 2012:
Estimated sales for October:
Estimated inventories at October 1:
Desired inventories at October 31:
Direct materials used in production:
Estimated factory overhead costs for October:
Estimated operating expenses for October:
Estimated other income and expense for October:
Estimated tax rate: 30%<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
7. Prepare a selling and administrative expenses budget for October. Enter all amounts as positive numbers.
8. Prepare a budgeted income statement for October. Enter all amounts as positive numbers.
Budgeted Income Statement
For the Month Ending October 31, 2012 _________________ _________________ _________________ _________________ _________________ _________________ Operating expenses: _________________ _________________ _________________ _________________ Total operating expenses _________________ _________________ _________________ Other income: _________________ _________________ Other expenses: _________________ _________________ _________________ _________________ _________________ _________________ _________________ _________________ _________________
Explanation / Answer
Unit sales volume
Selling price
Total
Bird house
3500
45
157500
feeder
3700
65
240500
Total
398 000
Production budget
Bird house
feeder
Expected unites to be sold
3500
3700
inventory
360
180
Total
3860
3880
less
300
200
Total
3560
3680
Unit sales volume
Selling price
Total
Bird house
3500
45
157500
feeder
3700
65
240500
Total
398 000