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Problem 9-42 Part 7 7. Prepare the budgeted income statement for the next year. (Do not round intermediate calculations.) Sales revenue $ 1,633,500 Less: Cost of goods sold Gross margin Selling and administrative expenses 387,000 Income before taxes Income tax expense Net income

Problem 9-42 Part 7 7. Prepare the budgeted income statement for the next year. (Do not round intermediate calculations.) Sales revenue $ 1,633,500 Less: Cost of goods sold Gross margin Selling and administrative expenses 387,000 Income before taxes Income tax expense Net income

FINANCIAL ACCOUNTING
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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Can you help me prepare the budgeted income statement for the next year?

**Problem 9-42 Part 7** 7. Prepare the budgeted income statement for the next year. *(Do not round intermediate calculations.)* | **Income Statement** | | |-------------------------------------------|-------------------------| | **Sales revenue** | $1,633,500 | | **Less: Cost of goods sold** | | | **Gross margin** | | | **Selling and administrative expenses** | $387,000 | | **Income before taxes** | | | **Income tax expense** | | | **Net income** | | This table outlines a structured format for projecting the budgeted income statement for the forthcoming year. The sales revenue is set at $1,633,500. The table requires additional values for "Cost of goods sold," "Gross margin," "Income before taxes," "Income tax expense," and "Net income" to complete the statement.
Transcribed Image Text:**Problem 9-42 Part 7** 7. Prepare the budgeted income statement for the next year. *(Do not round intermediate calculations.)* | **Income Statement** | | |-------------------------------------------|-------------------------| | **Sales revenue** | $1,633,500 | | **Less: Cost of goods sold** | | | **Gross margin** | | | **Selling and administrative expenses** | $387,000 | | **Income before taxes** | | | **Income tax expense** | | | **Net income** | | This table outlines a structured format for projecting the budgeted income statement for the forthcoming year. The sales revenue is set at $1,633,500. The table requires additional values for "Cost of goods sold," "Gross margin," "Income before taxes," "Income tax expense," and "Net income" to complete the statement.
**FreshPak Corporation Budget Analysis** FreshPak Corporation manufactures two types of cardboard boxes used for shipping canned food, fruit, and vegetables: canned food boxes (Type C) and perishable food boxes (Type P). Below are the material and labor requirements for each box type. ### Material and Labor Requirements | Type of Box | C | P | |-------------|---|---| | **Direct material required per 100 boxes:** | | | | Paperboard ($0.28 per pound) | 45 pounds | 85 pounds | | Corrugating medium ($0.14 per pound) | 35 pounds | 45 pounds | | **Direct labor required per 100 boxes ($16.00 per hour):** | 0.35 hour | 0.70 hour | ### Production-Overhead Costs Anticipated production-overhead costs for the next year are based on a production volume of 490,000 units for each type of box, applied on the basis of direct-labor hours. | **Item** | **Amount** | |----------------------- |-------------| | Indirect material | $14,850 | | Indirect labor | $76,690 | | Utilities | $52,500 | | Property taxes | $35,000 | | Insurance | $28,000 | | Depreciation | $60,500 | | **Total** | **$267,540**| ### Selling and Administrative Expenses Anticipated selling and administrative expenses for the next year: | **Category** | **Amount** | |---------------------------------------- |-------------| | Salaries and fringe benefits of sales personnel | $142,500 | | Advertising | $32,500 | | Management salaries and fringe benefits | $155,000 | | Clerical wages and fringe benefits | $49,000 | | Miscellaneous administrative expenses | $8,000 | | **Total** | **$387,000**| ### Sales Forecast Projected sales for the next year: | **Type** | **Sales Volume** | **Sales Price** | |----------|------------------|---------------------------------------| | Box type C | 495,000 boxes | $135.00 per hundred boxes | | Box type P | 495,000 boxes | $195.00 per hundred boxes | ### Inventory Information
Transcribed Image Text:**FreshPak Corporation Budget Analysis** FreshPak Corporation manufactures two types of cardboard boxes used for shipping canned food, fruit, and vegetables: canned food boxes (Type C) and perishable food boxes (Type P). Below are the material and labor requirements for each box type. ### Material and Labor Requirements | Type of Box | C | P | |-------------|---|---| | **Direct material required per 100 boxes:** | | | | Paperboard ($0.28 per pound) | 45 pounds | 85 pounds | | Corrugating medium ($0.14 per pound) | 35 pounds | 45 pounds | | **Direct labor required per 100 boxes ($16.00 per hour):** | 0.35 hour | 0.70 hour | ### Production-Overhead Costs Anticipated production-overhead costs for the next year are based on a production volume of 490,000 units for each type of box, applied on the basis of direct-labor hours. | **Item** | **Amount** | |----------------------- |-------------| | Indirect material | $14,850 | | Indirect labor | $76,690 | | Utilities | $52,500 | | Property taxes | $35,000 | | Insurance | $28,000 | | Depreciation | $60,500 | | **Total** | **$267,540**| ### Selling and Administrative Expenses Anticipated selling and administrative expenses for the next year: | **Category** | **Amount** | |---------------------------------------- |-------------| | Salaries and fringe benefits of sales personnel | $142,500 | | Advertising | $32,500 | | Management salaries and fringe benefits | $155,000 | | Clerical wages and fringe benefits | $49,000 | | Miscellaneous administrative expenses | $8,000 | | **Total** | **$387,000**| ### Sales Forecast Projected sales for the next year: | **Type** | **Sales Volume** | **Sales Price** | |----------|------------------|---------------------------------------| | Box type C | 495,000 boxes | $135.00 per hundred boxes | | Box type P | 495,000 boxes | $195.00 per hundred boxes | ### Inventory Information
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