Preparing a Budgeted Income Statement Oliver Company provided the following information for the coming year: Units produced and sold 160,000 Cost of goods sold per unit $6.30 Selling price $12 Variable selling and administrative expenses per unit $1.10 Fixed selling and administrative expenses $423,000 Tax rate 23 % Required: Prepare a budgeted income statement for Oliver Company for the coming year. Round all income statement amounts to the nearest dollar. Oliver Company Budgeted Income Statement For the Coming Year $fill in the blank 2 fill in the blank 4 $fill in the blank 6 fill in the blank 8 fill in the blank 10 $fill in the blank 12 fill in the blank 14 $fill in the blank 16
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.
Preparing a
Oliver Company provided the following information for the coming year:
| Units produced and sold | 160,000 |
| Cost of goods sold per unit | $6.30 |
| Selling price | $12 |
| Variable selling and administrative expenses per unit | $1.10 |
| Fixed selling and administrative expenses | $423,000 |
| Tax rate | 23 % |
Required:
Prepare a budgeted income statement for Oliver Company for the coming year. Round all income statement amounts to the nearest dollar.
| Oliver Company | |
| Budgeted Income Statement | |
| For the Coming Year | |
| $fill in the blank 2 | |
| fill in the blank 4 | |
| $fill in the blank 6 | |
| fill in the blank 8 | |
| fill in the blank 10 | |
| $fill in the blank 12 | |
| fill in the blank 14 | |
| $fill in the blank 16 |
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