Question

Sheffield Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 403,200 203,400 Unit selling price $22 $28 26,700 32,500 19,700 11,400 Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost 2. 34,300 44,300 2 19,500 11,200 $3 $3 0.4 0.6 $12 $12. $13 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $663,000 for product JB 50 and $364,000 for product JB 60, and administrative expenses of $542,000 for product JB 50 and $341,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

Answer 1

SHEFIELD INC Budgeted Income statement for the year Ending Dec 31 2017 JB50 B60 TOJ al soles $ 8870400.00 56,95,200.00 14.565,600 Lessi cost of goods sold (5241600) (4, 271,400) (9513,000) Gross profit (A) $ 3,628,800 1,423,800 5,052,600 Operating expense: Admin. expense 542000 341000 883000 selling Expense 663000 364000 1027000 Hora operating Exp. (B) 1205000 70500019, 10,000 Income from opposition (A-B) 2.423800 718,800 3142600 Interest Expense 150,000 tncome before income tax $ 2992600 Income Tax Expense (30%). 897 780 net income (Loss) $2.094,820 - cost of Good sold. " JB SO : 403200 x 2 DB 60 : 203400 x $13 = $21 = 5,241600 4,271,400