Explanation Budgeted income statement: This budget is prepared by the organization for the yearly, quarterly, or monthly basis as per need to find estimated income after income tax. It includes all the estimated income and expenses from the entire operating source, including income tax. Budgeted income statement for the month of May and June: Income statement (Amount in $) Particulars Month May June Sells: May: ( 50 , 000 + 50 , 000 × 8 % ) June: ( 50 , 000 + 50 , 000 × 12 % ) 54,000 56,000 Less: Cost of sell (see working note) 26,600 30,200 Gross profit 27,400 25,800 Less: Operating expenses Salary and commission: May: ( 3000 + 54 , 000 × 5 % ) June: ( 3000 + 56 , 000 × 5 % ) 5,700 5,800 Rent 3,200 3,200 Insurance 300 300 Total expense 9,200 9,300 Total income 18,200 16,500 Less: Income tax 3,640 3,300 Income after tax 14,560 13,200 Table (1) Given: 1. Sales in April were $50,000

Managerial Accounting, Student Value Edition (5th Edition)

5th Edition

ISBN: 9780134067179

Author: Karen W. Braun, Wendy M. Tietz

Publisher: PEARSON

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Chapter 9, Problem 9.60AP

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The budgeted income statement for the month of May and June.

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Managerial Accounting, Student Value Edition (5th Edition)

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The budgeted income statement for the month of May and June.

Solution Summary: The author explains the budgeted income statement for May and June. It includes all the estimated income and expenses from the entire operating source, including income tax.

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The budgeted income statement for the month of May and June.

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