Question

North Company has completed all of its operating budgets.The sales budget for the year shows 50,600 units and total sales of $2,317,800.The total unit cost of making one unit of sales is $22.Selling and administrative expenses are expected to be $304,000.Income taxes are estimated to be $270,180.Required:Prepare a budgeted income statement for the year ending December 31, 2014.

Answer 1

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The sales budget for the year shows 50,600 units and total sales of $2,317,800.

The total unit cost of making one unit of sales is $22.

Selling and administrative expenses are expected to be $304,000.

Income taxes are estimated to be $270,180.

Income statement:

Sales= 2,317,800

COGS= (22*50,600)= (1,113,200)

Gross profit= 1,204,600

Selling and administrative= (304,000)

Tax= (270,180)

Net operating profit= $630,420