**Hatcher Company: Budgeted Income Statement Overview for 2019**Hatcher Company has prepared a budgeted income statement for the year ended December 31, 2019. The statement requires analyzing different unit sales scenarios: 600 units, 1,100 units, and 1,300 units.### Data for 1,100 Units Sold:- **Sales Revenue**: Calculated as $750 per unit, leading to a total of $825,000.- **Cost of Goods Sold (COGS)**: Represents 60% of sales, totaling $495,000.- **Gross Profit**: The difference between sales revenue and COGS, amounting to $330,000.- **Selling and Administrative Expenses**: Calculated as 35% of sales, equating to $288,750.- **Operating Income**: The remaining income after deducting expenses from gross profit, resulting in $41,250.This structured approach helps in understanding financial outcomes at varying sales levels, aiding in better planning and decision-making.

Operating Income: Deduction of cost of Goods sold from Sales revenue is called Gross profit. Selling…

Hatcher Company prepared the following budgeted income statement for 2019: E (Click the icon to view the budgeted income statement.) Read the requirements Requirement 1. Prepare a budgeted income statement with columns for 600 units, 1,100 units, and 1.300 units sold. Hatcher Company Budgeted Income Statement For the Year Ended December 31, 2019 - X Data Table Unit sales 600 Sales Revenue Cost of Goods Sold Hatcher Company Gross Profit Budgeted Income Statement Selling and Administrative Expenses For the Year Ended December 31, 2019 Operating Income Unit sales 1,100 Sales Revenue ($750 per unit) 825,000 495,000 Cost of Goods Sold (60% of sales) Gross Profit 330,000 288,750 Selling and Administrative Expenses (35% of sales) 41,250 Operating Income Print Done

Hatcher Company prepared the following budgeted income statement for 2019: E (Click the icon to view the budgeted income statement.) Read the requirements Requirement 1. Prepare a budgeted income statement with columns for 600 units, 1,100 units, and 1.300 units sold. Hatcher Company Budgeted Income Statement For the Year Ended December 31, 2019 - X Data Table Unit sales 600 Sales Revenue Cost of Goods Sold Hatcher Company Gross Profit Budgeted Income Statement Selling and Administrative Expenses For the Year Ended December 31, 2019 Operating Income Unit sales 1,100 Sales Revenue ($750 per unit) 825,000 495,000 Cost of Goods Sold (60% of sales) Gross Profit 330,000 288,750 Selling and Administrative Expenses (35% of sales) 41,250 Operating Income Print Done

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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Question 3 a) Why do successful companies tend to use the bottom-up approach to establish a master budget? b) Green Tea's data show the following information for the financial year, beginning July 2020: July Aug. Sept. Oct. Nov. Estimated sales (units) 25,000 25,000 27,000 27,500 28,000 Sales price per unit $31 $31 $31 $31 $31 Direct labour per unit $1.75 $1.75 $1.50 $1.50 $1.50 Labour rate per hour $21 $21 $24 $24 $24 New machinery will be added in September. This machine will reduce the labour required per unit and increase the labour rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next month's requirements. Direct material requires 2.5 kg per unit at a cost of $5 per kg. The ending inventory required for direct materials is 20% of the next month's needs. In July, the beginning inventory is 3,750 units of finished goods and 13,125 kg of materials. Required: i) Prepare a production budget for the first quarter of the…
Magnify Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020. (Click the icon to view the information.) Calculate (1) the cost of goods sold budget (label it Schedule 7) (2) the operating (nonmanufacturing) costs budget (label it Schedule 8) and (3) the operating income budget for the year ending December 31, 2020. (1). Begin by calculating (1) the cost of goods sold budget (label it Schedule 7) for the year ending December 31, 2020. Schedule 7: Cost of Goods Sold Budget for the Year Ending December 31, 2020 Beginning finished goods inventory, January 1, 2020 Direct materials used Direct manufacturing labor Manufacturing overhead Cost of goods manufactured Cost of goods available for sale Deduct ending finished goods inventory, December 31, 2020 Cost of goods sold Business Function 356,000 72,200 146,400 Marketing Distribution Administration costs (2). Calculate the operating (nonmanufacturing) costs budget…
(b) A sales budget is given below for one of the products manufactured by N.Ltd .For six months ended 30th June 2021. Month Units January 60,000 February 105,000 March 180,000 April 120,000 May 90,000 June 75,000 The inventory of finished goods at the end of each month equal 20% at the next month's sales Page 1 of 4 On 1t Jan 2021, finished goods inventory totaled 12,000 units. Each unit of the product requires nine units of a specialized liquid known as HN-2, sometimes this extract is in short supply for this reason, the company has a policy of maintaining an inventory at the end of each month equal to 30%of next month's production needed. This requirement was met on 1st Jan 2021. Required Prepare a budget showing the quantity of NH-2 to be purchased each month from January, February and March and in total for the three months period (ii) What is the significance of budgeting in any business organization
Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. Budgeted Gross Margin SHADEE CORPORATION Budgeted Income Statement Budgeted Net Operating Income May June
For the purposes of calculating COGS and Closing Inventory of finished goods, cost per unit forJanuary 2021 is $670 for the Premium wardrobe and $1,480 for the De Luxe wardrobe. Prepare the following budgets for January 2021: Revenues budget Production budget in units Direct materials usage budget and direct materials purchases budget (both budgets in units and $) Direct manufacturing labour budget Manufacturing overhead budget Ending inventories budget (direct materials and finished goods) Cost of goods sold budget For each budget, prepare by product (Premium and De Luxe) and in total.Format of the spreadsheet makes it easy to read and distinguishes clearly between the input and output cells
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1. ABC Company is budgeting sales of 110,000 units of Product R for the month of November 2023. Production of one unit of R requires two units of Material A and three units of Material B. Actual inventory units on November 1 and budgeted inventory units on November 30 are as follows: Actual inventory November 1 Budgeted inventory at November 30 20,000 10,000 18,000 25,000 22,000 24,000 How many units of Material A is ABC planning to purchase during November 2023? Show your solution. 2. Ashton Appliances Inc. is preparing a budget for 2024 by quarters. Budget data appear as follows: Product R Material A Material B 1st quarter 2nd quarter 3rd quarter 4th quarter 1st quarter, 2025 Budgeted sales Materials purchases Beginning materials P860,000 940,000 990,000 960,000 $280,000 360,000 400,000 300,000 P75,000 65,000 50,000 45,000 40,000 Direct labor is budgeted at P140,000 each quarter with factory overhead estimated at 200 percent of direct labor costs. Selling and general expenses are…
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Please do not give solution in image format thanku