Explanation Budgeted income statement: The budgeted income statement shows the overall operating profit of the business in the budgeted period. It includes sales revenue and all the costs of the business. It includes the direct and indirect cost of the production. Operating profit is calculated by subtracting the total cost from the sales of the business. The budgeted income statement for company J: Company J Budgeted Income Statement for the month end 31 April Particulars Amount Revenue: Commercial clients(1) $67,200 Residential clients(1) $52,800 Total revenue (a) $120,000 Less: expenses Cleaner compensation(2) $62,400 Supplies(2) $20,800 SG&A $30,000 Other expenses $2,000 Total expenses (b) $115,200 Operating profit c = (a-b) $4,800 Table: (1) Thus, the operating profit is $4,800. Working note 1: Calculate the revenue: Particulars Number of clients Rate per client Amount Commercial clients 48(3) $1,400 $67,200 Residential clients 176(4) $300 $52,800 Table: (2) Working note 2: Calculate the expenses: st

GEN COMBO FUNDAMENTALS OF COST ACCOUNTING; CONNECT 1S ACCESS CARD

5th Edition

ISBN: 9781259911651

Author: William N. Lanen Professor

Publisher: McGraw-Hill Education

See similar textbooks

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…

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…

Videos

Question

Chapter 13, Problem 41E

To determine

Prepare a budgeted income statement for Company J for April.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 13, Problem 40E

Chapter 13, Problem 42E

Students have asked these similar questions

I need guidance with this general accounting problem using the right accounting principles.

Describe how inventory is valued under FIFO and LIFO methods. Explain.

Please explain the solution to this general accounting problem with accurate principles.

Chapter 13 Solutions

GEN COMBO FUNDAMENTALS OF COST ACCOUNTING; CONNECT 1S ACCESS CARD

Ch. 13 - Prob. 1RQ Ch. 13 - Prob. 2RQ Ch. 13 - Prob. 3RQ Ch. 13 - What role does the master budget play in the...Ch. 13 - What problems might arise if a firm relies solely...Ch. 13 - What is the coordinating role of budgeting?Ch. 13 - Prob. 7RQ Ch. 13 - Write out the inventory equation that is used to...Ch. 13 - What makes creating budgets for marketing and...Ch. 13 - Prob. 10RQ

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Prepare a budgeted income statement for Company J for April.

Solution Summary: The author explains how to prepare a budgeted income statement for Company J for the month end 31 April.

Concept explainers

Videos

Prepare a budgeted income statement for Company J for April.

Want to see the full answer?

Chapter 13 Solutions