Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year. Required: Prepare the company's budgeted income statement for the year. Gig Harbor Boating Budgeted Income Statement 580 $ 2,010 $ 1,470 $45 $ 200,000 $ 17,000

Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year. Required: Prepare the company's budgeted income statement for the year. Gig Harbor Boating Budgeted Income Statement 580 $ 2,010 $ 1,470 $45 $ 200,000 $ 17,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year 680 $ 2,060 $ 1,680 $50 $ 200,000 $22,000 Required: Prepare the company's budgeted income statement for the year. Gig Harbor Boating Budgeted Income Statement < Prev 9 of 9 Next ........
I'm working on a budgeted income statement. How do I find the income tax? And what do I do with Estimated Tax Rate:30%?
Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 3,500,000Cost of sales: Direct Material $ 500,000 Direct labor 250,000 Variable Overhead 275,000 Fixed Overhead 600,000 1,625,000Gross Profit $ 1,875,000Selling and General & Admin. Exp. Variable 750,000 Fixed 250,000 1,000,000Operating Income $ 875,000The break-even point (rounded to the nearest dollar) for Evergreen Corporation for the current year is:$2,155,172.$1,865,672.$1,724,138.$2,625,000.
Question: Asy Clean operates a chain of dry cleaners. It is experimenting with a continuous-improvement (i.e., kaizen) budget for operating expenses. Currently, a typical location has operating expenses of $14,000 per month. Plans are in place to achieve labor and utility savings. The associated operational changes are estimated to reduce monthly operating costs by a factor of 0.99 beginning in January. What is the estimated operating cost for: i) January? ii) For June? iii) For December?
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Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 1,500,000 Cost of sales: Direct Material $ 250,000 Direct labor 150,000 Variable Overhead 75,000 Fixed Overhead 100,000 575,000 Gross Profit $ 925,000 Selling and G&A Variable 200,000 Fixed 250,000 450,000 Operating Income $ 475,000 The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:
Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process:
Case Study for REX Company.Comprehensive operating budget. REX, Inc., manufactures and sells snowboards. REXmanufactures a single model, the Pipex. In the summer of 2018, REXS accountant gatheredthe following data to prepare budgets for 2019:Materials and labor requirementsDirect materials:Wood 5 board feet per snowboardFiberglass 6 yards per snowboardDirect manufacturing labor 5 hours per snowboardREX’ CEO expects to sell 1,000 snow boards during 2019 at an estimated retail price of$ 450 per board. Further, he expects 2019 beginning inventory of 100 boards, and would liketo end 2019 with 200 snowboards in stock.Direct materials inventories Beginning Inventory Ending Inventory1/1/2019 12/31/2019________________________________________________________Wood 2,000 1,500Fiberglass 1,000 2,000Variable manufacturing overhead is allocated is allocated at the rate $ 7 per directmanufacturing labor-hour. There are also $ 66,000 in fixed manufacturing overhead costsbudgeted for 2019.REX combines…
es Required information [The following information applies to the questions displayed below.] Morganton Company makes one product and it provided the following information to help prepare the master budget: a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,000, 21,000, 23,000, and 24,000 units, respectively. All sales are on credit. b. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 30% of the following month's unit sales. d. The ending raw materials inventory equals 20% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.70 per pound. e. Twenty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month. f. The direct labor wage rate is $14 per hour. Each unit of finished goods requires two…
Required information [The following information applies to the questions displayed below] Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. Sales Cost of goods sold Direct materials Direct labor PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Machinery repairs (variable cost) Depreciation Plant equipment (straight-line) Utilities ($30, 000 is variable) Plant management salaries Gross profit $3,150,000 $ 915,000 225,000 45,000 300,000 195,000 200,000 1,880,000 1,270,000 Selling expenses 75,000 Shipping 90,000 Sales salary (fixed annual amount) 236,000 400,000 General and administrative expenses Advertising expense 150,000 Salaries 241,000 Entertainment expense Income from operations 75,000 466,000 $ 404, 000 Packaging 3. The company's business conditions are improving. One possible result is a sales volume of 18,000 units. The company president is confident that…
Prepare "budgeted income statement" for May. 3.) Salsa has two service departments, the Maintenance Department and the IT Department. Salsa has also two production departments, the Cutting department and the Mixing Department. The usage of the two service departments' output for the year is as follows: User of Service Maintenance Maintenance IT 25% 40 % 35 % Provider of Service Maintenance: $ 200,000 IT: $ 120,000 15% IT Cutting Mixing The budgeted costs in the two service departments for the year as follows: 45% 40% Use a.) direct method, b.) step-down method and c.) reciprocal services method to allocate the budgeted costs of Maintenance and IT departments.