Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $50.00 Direct labor 30.00 Factory overhead $350,000 6.00 Selling expenses: Sales salaries and commissions 340,000 4.00 Advertising 116,000 Travel 4,000 Miscellaneous selling expense 2,300 1.00 Administrative expenses: Office and officers' salaries 325,000 Supplies 6,000 4.00 Miscellaneous administrative expense 8,700 1.00 Total $1,152,000 $96.00 It is expected that 12,000 units will be sold at a price of $240 a unit. Maximum sales within the relevant range are 18,000 units. Required:

FINANCIAL ACCOUNTING
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Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage
Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods
sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows:
Estimated
Estimated Variable Cost
Fixed Cost
(per unit sold)
Production costs:
Direct materials
$50.00
Direct labor
30.00
Factory overhead
$350,000
6.00
Selling expenses:
Sales salaries and commissions
340,000
4.00
Advertising
116,000
Travel
4,000
Miscellaneous selling expense
2,300
1.00
Administrative expenses:
Office and officers' salaries
325,000
Supplies
6,000
4.00
Miscellaneous administrative expense
8,700
1.00
Total
$1,152,000
$96.00
It is expected that 12,000 units will be sold at a price of $240 a unit. Maximum sales within the relevant range are 18,000 units.
Required:
1. Prepare an estimated income statement for 20Y7.
Relmain Co.
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Transcribed Image Text:* CengageNOWv2 | Online teachin x 1 Dw.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress%3Dfalse Upd eBook Print Item Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $50.00 Direct labor 30.00 Factory overhead $350,000 6.00 Selling expenses: Sales salaries and commissions 340,000 4.00 Advertising 116,000 Travel 4,000 Miscellaneous selling expense 2,300 1.00 Administrative expenses: Office and officers' salaries 325,000 Supplies 6,000 4.00 Miscellaneous administrative expense 8,700 1.00 Total $1,152,000 $96.00 It is expected that 12,000 units will be sold at a price of $240 a unit. Maximum sales within the relevant range are 18,000 units. Required: 1. Prepare an estimated income statement for 20Y7. Relmain Co. Check My Work Previous All work saved. Email Instructor Save and Excit Submit Assignment for Grading 7:18 PM 99+ 75°F 7/25/2021
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1. Prepare an estimated income statement for 20Y7.
Belmain Co.
Estimated Income Statement
For the Year Ended December 31, 20Y7
Sales v
2,880,000
Cost of goods sold:
Direct materials v
600,000 V
Direct labor v
360,000V
Factory overhead v
72,000 x
Cost of goods sold
Gross profit
Expenses:
Selling expenses:
Sales salaries and commissions
48,000 X
Advertising v
116,000
Travel v
4,000 V
Miscellaneous selling expense v
12,000 X
Total selling expenses
Administrative expenses:
Office and officers' salaries v
Supplies v
48,000 x
Miscellaneous administrative expense v
Total administrative expenses
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Transcribed Image Text:* CengageNOWv2 | Online teachin x Updat com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3false eBook Print Item 1. Prepare an estimated income statement for 20Y7. Belmain Co. Estimated Income Statement For the Year Ended December 31, 20Y7 Sales v 2,880,000 Cost of goods sold: Direct materials v 600,000 V Direct labor v 360,000V Factory overhead v 72,000 x Cost of goods sold Gross profit Expenses: Selling expenses: Sales salaries and commissions 48,000 X Advertising v 116,000 Travel v 4,000 V Miscellaneous selling expense v 12,000 X Total selling expenses Administrative expenses: Office and officers' salaries v Supplies v 48,000 x Miscellaneous administrative expense v Total administrative expenses Check My Work (Previous All work saved. Email Instructor Save and Exit Submit Assignment for Grading 7:18 PM 99+ 75°F ヘ 回 7/25/2021
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