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barxatty [35]
3 years ago
9

Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of S25 per un

it. Sales (in units) are forecasted at 45,000 for January, 55,000 for February, and 50,000 for March. Cost of goods sold is S14 per unit. Other expense information for the first quarter follows. Prepare a budgeted income statement for this first quarter.
Business
1 answer:
alukav5142 [94]3 years ago
5 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

Selling price= $25 per unit.

Sales (in units):

January= 45,000

February= 55,000

March= 50,000

The cost of goods sold is $14 per unit.

The gross profit is calculated using the following formula:

Gross profit= selling price - cost of goods sold

January:

Sales= 45,000*25= 1,125,000

COGS= 45,000*14= (630,000)

Gross profit= 525,000

February:

Sales= 55,000*25= 1,375,000

COGS= 55,000*14= (770,000)

Gross profit= 605,000

March:

Sales= 50,000*25= 1,250,000

COGS= 50,000*14= (700,000)

Gross profit= 550,000

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6 0
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A company started the year with "$185,000 of goods finished" and ready for sale. During the year, a total of $700,000 of goods w
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