Prepare a budgeted income statement for the year. E10.26 (LO 3) Haven Company has accumulated the following budget data for the year 2022: 1. Sales: 30,000 units; unit selling price $80 2. Cost of one unit of finished goods: direct materials, 2 kg at $5 per kilogram; direct labour, three hours at $12 per hour; and manufacturing overhead, $6 per direct labour hour 3. Inventories (raw materials only): beginning, 10,000 kg; ending, 15,000 kg 4. Raw materials cost: $5 per kilogram 5. Selling and administrative expenses: $200,000 6. Income taxes: 30% of income before income taxes Instructions a. Prepare a schedule showing the calculation of the cost of goods sold for 2022. b. Prepare a budgeted income statement for 2022.

Prepare a budgeted income statement for the year. E10.26 (LO 3) Haven Company has accumulated the following budget data for the year 2022: 1. Sales: 30,000 units; unit selling price $80 2. Cost of one unit of finished goods: direct materials, 2 kg at $5 per kilogram; direct labour, three hours at $12 per hour; and manufacturing overhead, $6 per direct labour hour 3. Inventories (raw materials only): beginning, 10,000 kg; ending, 15,000 kg 4. Raw materials cost: $5 per kilogram 5. Selling and administrative expenses: $200,000 6. Income taxes: 30% of income before income taxes Instructions a. Prepare a schedule showing the calculation of the cost of goods sold for 2022. b. Prepare a budgeted income statement for 2022.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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

Prepare a budgeted income statement for the year.
E10.26 (LO 3) Haven Company has accumulated the following budget data for the
year 2022:
1. Sales: 30,000 units; unit selling price $80
2. Cost of one unit of finished goods: direct materials, 2 kg at $5 per kilogram; direct
labour, three hours at $12 per hour; and manufacturing overhead, $6 per direct
labour hour
3. Inventories (raw materials only): beginning, 10,000 kg; ending, 15,000 kg
4. Raw materials cost: $5 per kilogram
5. Selling and administrative expenses: $200,000
6. Income taxes: 30% of income before income taxes
Instructions
a. Prepare a schedule showing the calculation of the cost of goods sold for 2022.
b. Prepare a budgeted income statement for 2022.

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