Walt Bach Company has accumulated the following budget data for the year 2019. Sales: 40000 units, unit selling price $50. Cost of one unit of finished goods: Direct materials 2 pounds at $5 per pound, direct labor 1.5 hours at $12 per hour, and manufacturing overhead $6 per direct labor hour. Inventories (raw material only): Beginning, 10000 pounds; ending, 15000 pounds. Raw materials cost: $5 per pound. Selling and administrative expenses: $200000 Income taxes: 30% of income before income taxes.   Prepare a budget income statement for 2019.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Walt Bach Company has accumulated the following budget data for the year 2019.

  1. Sales: 40000 units, unit selling price $50.
  2. Cost of one unit of finished goods: Direct materials 2 pounds at $5 per pound, direct labor 1.5 hours at $12 per hour, and manufacturing overhead $6 per direct labor hour.
  3. Inventories (raw material only): Beginning, 10000 pounds; ending, 15000 pounds.
  4. Raw materials cost: $5 per pound.
  5. Selling and administrative expenses: $200000
  6. Income taxes: 30% of income before income taxes.

 

Prepare a budget income statement for 2019.

 

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