edugenwileypluscom Home Tools 2017 ment WileyPLUS Harris Flo

edugen.wileyplus.com Home Tools 2017 ment WileyPLUS Harris Flood Education Mapping Too immel, Accounting, 6e elp I System Announcements CALCULATOR PRINTER VERSION BACK NEXT 21-2A (Part Level Submission) c. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below 2017 Federal Taxl Form 1040A: In Product Product JB 50 JB 60 Tax Return Form 2441: Ch Dependent Car get ated volume in units lling price 403,900 201,200 $28 Schedule 8812 Additional Child Credit $23 budget: 26,400 32,900 16,700 12,600 ending finished goods units ing finished goods units terials budget materials per unit (pounds) 2 33,900 42,700 $2 18,900 11,000 ending direct materials pounds ing direct materials pounds r pound or budget abor time per unit labor rate per hour income statement: nit cost 0.6 0.4 $11 $11 $14 $21 ting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter ing expenses of $665,000 for product JB 50 and $363,000 for product JB 60, and administrative expenses of $544,000 for product JB 50

Solution

ANS

DELEON INC.

BUDGETED INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31,2017

JB50 JB60 TOTAL

SALES $9,289,700 $5,633,600 $14,923,300

COST OF GOODS SOLD ($3,320,560 ) ( $2,610,480) ($5,931,040)

GROSS PROFIT $5,969,140 $3,023,120 $8,992,260

OPERATING EXPENSES

ADMINISTRATIVE EXPENSES $544,000 $341,000 $885,000

SELLING EXPENSES $665,000 $363,000 $1,028,000

TOTAL OPERATING EXPENSES ($1,209,000) ($704,000) ($1,913,000)

INCOME FROM OPERATIONS $4,760,140 $2,319,120 $7,079,260

INTEREST EXPENSE ($150,000)

INCOME BEFORE INCOME TAXES $6,929,260

INCOME TAX EXPENSE ( $2078778)

NET INCOME / (LOSS) $4,850,482