Sibson Manufacturing Company established the following standard price and cost data. $8.60 per unit $ 3.10 per unit $2,500 total $ 600 total Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Gibson planned to produce and sell 2,300 units. Actual production and sales amounted to 2,500 units. Required a. Prepare the pro forma income statement in contribution format that would appear in a master budget. b. Prepare the pro forma income statement in contribution format that would appear in a flexible budget.
Sibson Manufacturing Company established the following standard price and cost data. $8.60 per unit $ 3.10 per unit $2,500 total $ 600 total Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Gibson planned to produce and sell 2,300 units. Actual production and sales amounted to 2,500 units. Required a. Prepare the pro forma income statement in contribution format that would appear in a master budget. b. Prepare the pro forma income statement in contribution format that would appear in a flexible budget.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Please complete a and b
Transcribed Image Text:# Gibson Manufacturing Company Standard Price and Cost Data
Gibson Manufacturing Company has established the following standard pricing and cost data:
- **Sales price**: $8.60 per unit
- **Variable manufacturing cost**: $3.10 per unit
- **Fixed manufacturing cost**: $2,500 total
- **Fixed selling and administrative cost**: $600 total
Gibson planned to produce and sell 2,300 units. The actual production and sales amounted to 2,500 units.
## Required
a. Prepare the pro forma income statement in contribution format that would appear in a master budget.
b. Prepare the pro forma income statement in contribution format that would appear in a flexible budget.
---
### Instructions
Complete this question by entering your answers in the tabs below.
Tabs:
- Required A
- Required B
### Required A
**Prepare the pro forma income statement in contribution format that would appear in a master budget.**
**Table:**
**GIBSON MANUFACTURING COMPANY**
- **Pro Forma Income Statement**
- Master Budget
- 2,300 Units
(Note: The table in the image is formatted to include rows for data entry related to the pro forma income statement, but specific numeric entries are not provided in the image.)
Please provide further details or data entries if needed to complete the income statement.
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Follow-up Question
Please use following terms and organize income statements correctly please with numbers thank you
Transcribed Image Text:Gibson Manufacturing Company established the following standard price and cost data.
$8.60 per unit
$ 3.18 per unit
Fixed manufacturing cost
$ 2,500 total
$ 680 total
Fixed selling and administrative cost
Gibson planned to produce and sell 2,300 units. Actual production and sales amounted to 2,500 units.
Required
a. Prepare the pro forma income statement in contribution format that would appear in a master budget.
b. Prepare the pro forma income statement in contribution format that would appear in a flexible budget.
Sales price
Variable manufacturing cost
Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare the pro forma income statement in contribution format that would appear in a master budget.
GIBSON MANUFACTURING COMPANY
Pro Forma Income Statement
Master Budget
2,300 Units
Fixed manufacturing
Fixed selling and administrative
Sales
Variable manufacturing
Variable selling and administrative
0
0
10
Required B
Solution
by Bartleby ExpertFollow-up Question
Please use following terms and organize income statements correctly please with numbers thank you
Transcribed Image Text:Gibson Manufacturing Company established the following standard price and cost data.
$8.60 per unit
$ 3.18 per unit
Fixed manufacturing cost
$ 2,500 total
$ 680 total
Fixed selling and administrative cost
Gibson planned to produce and sell 2,300 units. Actual production and sales amounted to 2,500 units.
Required
a. Prepare the pro forma income statement in contribution format that would appear in a master budget.
b. Prepare the pro forma income statement in contribution format that would appear in a flexible budget.
Sales price
Variable manufacturing cost
Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare the pro forma income statement in contribution format that would appear in a master budget.
GIBSON MANUFACTURING COMPANY
Pro Forma Income Statement
Master Budget
2,300 Units
Fixed manufacturing
Fixed selling and administrative
Sales
Variable manufacturing
Variable selling and administrative
0
0
10
Required B
Solution
by Bartleby ExpertKnowledge Booster
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