Woodruff Company prepared the following budgeted income statement for 2019: E (Click the icon to view the budgeted income statement.) - X O Data Table Read the requirements Requirement 1. Prepare a budgeted income statement with columns for 1,200 units, 1,400 units, and 1,900 units sold. Woodruff Company Woodruff Company Budgeted Income Statement For the Year Ended December 31, 2019 Budgeted Income Statement For the Year Ended December 31, 2019 Unit sales 1,400 Unit sales 1,200 1,400 1,900 Sales Revenue ($550 per unit) 770,000 308,000 Sales Revenue Cost of Goods Sold (40% of sales) Cost of Goods Sold Gross Profit 462,000 192,500 Gross Profit Selling and Administrative Expenses (25% of sales) 269,500 Selling and Administrative Expenses Operating Income Operating Income Requirement 2. How might managers use this type of budgeted income statement? Print Done The budgeted income statement prepared in Requirement 1 is a V budget. It allows Woodruff's managers to plan for sales level(s). Requirement 3. How might spreadsheet software such as Excel assist in this type of analysis? Technology, such as Excel spreadhseet software, makes it more to conduct and prepare a company's If managers have a better understanding of how changes in sales volume and costs are likely to affect V, they can V if key assumptions turn out to be wrong.
Woodruff Company prepared the following budgeted income statement for 2019: E (Click the icon to view the budgeted income statement.) - X O Data Table Read the requirements Requirement 1. Prepare a budgeted income statement with columns for 1,200 units, 1,400 units, and 1,900 units sold. Woodruff Company Woodruff Company Budgeted Income Statement For the Year Ended December 31, 2019 Budgeted Income Statement For the Year Ended December 31, 2019 Unit sales 1,400 Unit sales 1,200 1,400 1,900 Sales Revenue ($550 per unit) 770,000 308,000 Sales Revenue Cost of Goods Sold (40% of sales) Cost of Goods Sold Gross Profit 462,000 192,500 Gross Profit Selling and Administrative Expenses (25% of sales) 269,500 Selling and Administrative Expenses Operating Income Operating Income Requirement 2. How might managers use this type of budgeted income statement? Print Done The budgeted income statement prepared in Requirement 1 is a V budget. It allows Woodruff's managers to plan for sales level(s). Requirement 3. How might spreadsheet software such as Excel assist in this type of analysis? Technology, such as Excel spreadhseet software, makes it more to conduct and prepare a company's If managers have a better understanding of how changes in sales volume and costs are likely to affect V, they can V if key assumptions turn out to be wrong.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 5P: Selling and administrative expense budget and budgeted income statement Budgeted selling and...
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Woodruff Company prepared the following budgeted income statement for 2019:
E (Click the icon to view the budgeted income statement.)
Data Table
Read the requirements
Requirement 1. Prepare a budgeted income statement with columns for 1,200 units, 1,400 units, and 1,900 units sold.
Woodruff Company
Woodruff Company
Budgeted Income Statement
For the Year Ended December 31, 2019
Budgeted Income Statement
Unit sales
1,400
For the Year Ended December 31, 2019
Unit sales
1,200
1,400
1,900
Sales Revenue ($550 per unit)
$
770,000
Sales Revenue
Cost of Goods Sold (40% of sales)
308,000
Cost of Goods Sold
Gross Profit
462,000
192,500
Gross Profit
Selling and Administrative Expenses (25% of sales)
$
269,500
Selling and Administrative Expenses
Operating Income
Operating Income
Print
Done
Requirement 2. How might managers use this type of budgeted income statement?
The budgeted income statement prepared in Requirement 1 is a
V budget. It allows Woodruff's managers to plan for
V sales level(s).
Requirement 3. How might spreadsheet software such as Excel assist in this type of analysis?
Technology, such as Excel spreadhseet software, makes it more
to conduct
V and prepare a company's
V If managers have a better understanding of how changes in sales volume and costs are likely to affect
they can
V if key assumptions turn out to be wrong.
Expert Solution
Step 1 Introduction
The budgets are prepared to evaluate the expenses or income may occur for a particular condition.
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