Question

Culver Company has completed all of its operating budgets. The sales budget for the year shows 50,180 units and total sales of $2,273,600. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $301,900. Interest is estimated to be $10,000. Income taxes are estimated to be $214,000.
Required:

Prepare a budgeted multiple-step income statement for the year ending December 31, 2017.

Answer 1

Answer:

Net Income = $593,560

Explanation:

Cost of Goods Sold=sales unit × cost of sales per unit

= $23 × 50,180 = $1,154,140

Income statement December 31,2017

Particular                           Amount($)

Sales                                   2,273,600

Less:-Cost of goods sold   (1,154,140)

Gross Profit                           1,119,460

Less-Selling and Administrative Expenses (3,019,00)

Income from Operation           817,560

Less-Estimated Interest     (10,000)

Income before Taxes           807,560

Less-Income Taxes          (214,000)

Net Income                            593,560