Budgeted Income Statement and Supporting BudgetsThe budget director of Birds of a Feather 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 January:Estimated sales for January: Bird house 6,000 units at $55 per unit Bird feeder 4,500 units at $75 per unitEstimated inventories at January 1:Direct materials: Wood 220 ft. Plastic 250 lbs. Finished products: Bird house 300 units at $23 per unit Bird feeder 240 units at $34 per unitDesired inventories at January 31:Direct materials: Wood 180 ft. Plastic 210 lbs. Finished products: Bird house 340 units at $23 per unit Bird feeder 200 units at $34 per unitDirect materials used in production:In manufacture of Bird House: Wood 0.80 ft. per unit of product Plastic 0.50 lb. per unit of productIn manufacture of Bird Feeder: Wood 1.20 ft. per unit of product Plastic 0.75 lb. per unit of productAnticipated cost of purchases and beginning and ending inventory of direct materials: Wood $8.00 per ft. Plastic $1.20 per lb. Direct labor requirements:Bird House: Fabrication Department 0.20 hr. at $15 per hr. Assembly Department 0.30 hr. at $12 per hr. Bird Feeder: Fabrication Department 0.40 hr. at $15 per hr. Assembly Department 0.35 hr. at $12 per hr. Estimated factory overhead costs for January:Indirect factory wages $80,000Depreciation of plant and equipment 25,000Power and light $8,000Insurance and property tax 2,000Estimated operating expenses for January:Sales salaries expense $90,000Advertising expense 20,000Office salaries expense 18,000Depreciation expense—office equipment 800Telephone expense—selling 500Telephone expense—administrative 200Travel expense—selling 5,000Office supplies expense 250Miscellaneous administrative expense 450Estimated other income and expense for January:Interest revenue $300Interest expense 224Estimated tax rate: 30%Required:5. Prepare a factory overhead cost budget for January. Birds of a Feather Inc. Factory Overhead Cost BudgetFor the Month Ending January 31Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax Total $6. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $29,000, and work in process at the end of January is estimated to be $35,400.Birds of a Feather Inc. Cost of Goods Sold BudgetFor the Month Ending January 31Direct materials: Cost of direct materials available for use Cost of direct materials placed in production Total manufacturing costs Total work in process during the period Cost of goods manufactured Cost of finished goods available for sale Cost of goods sold $7. Prepare a selling and administrative expenses budget for January. Birds of a Feather Inc. Selling and Administrative Expenses BudgetFor the Month Ending January 31Selling expenses:Sales salaries expense Advertising expense Telephone expense—selling Travel expense—selling Total selling expenses Administrative expenses:Office salaries expense Depreciation expense—office equipment Telephone expense—administrative Office supplies expense Miscellaneous administrative expense Total administrative expenses Total operating expenses $8. Prepare a budgeted income statement for January. Birds of a Feather Inc. Budgeted Income StatementFor the Month Ending January 31Operating expenses: Total operating expenses Other income: Other expenses: $