Budgeted Income Statement : The budgeted income statement is a statement which shows the financial performance of a company. This statement shows the revenue earned and the expenses incurred in a particular financial period. This statement shows all the operating as well as non-operating activities of a business. Sales Budget: A sales budget is prepared to determine the expected sales for the accounting period, in terms of both units and dollars. It gives the details of the sales and marketing related activities. Production budget: The production budget is a kind of operating budget which shows that how many units will be produced for the given accounting period so that the estimated sales are met and it also determines the needs of inventory. Direct Materials Budget: The direct materials purchase budget is a kind of operating budget which determines the quantity of direct materials that should be purchased, so that the budgeted production and the need of inventory is met. This budget also determines the cost of purchase of the direct materials. Direct Labor Budget: The direct labor budget is prepared to show the direct labors that are needed, and all other costs are associated during a period. Selling and Administrative Expense Budget: This budget shows the operating expenses which are necessary to operate the overall business of the company and to support the sales. To prepare: The budgeted multiple-step income statement for the first six months and all operating budgets by quarters.

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Chapter 23, Problem 23.1AP

To determine

Budgeted Income Statement: The budgeted income statement is a statement which shows the financial performance of a company. This statement shows the revenue earned and the expenses incurred in a particular financial period. This statement shows all the operating as well as non-operating activities of a business.

Sales Budget: A sales budget is prepared to determine the expected sales for the accounting period, in terms of both units and dollars. It gives the details of the sales and marketing related activities.

Production budget: The production budget is a kind of operating budget which shows that how many units will be produced for the given accounting period so that the estimated sales are met and it also determines the needs of inventory.

Direct Materials Budget: The direct materials purchase budget is a kind of operating budget which determines the quantity of direct materials that should be purchased, so that the budgeted production and the need of inventory is met. This budget also determines the cost of purchase of the direct materials.

Direct Labor Budget: The direct labor budget is prepared to show the direct labors that are needed, and all other costs are associated during a period.

Selling and Administrative Expense Budget: This budget shows the operating expenses which are necessary to operate the overall business of the company and to support the sales.

To prepare: The budgeted multiple-step income statement for the first six months and all operating budgets by quarters.

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