Question

P22-40A (book/static) Bradley Company has the following post-dosing trial balance on December 31 2018 11! (Click the icon to view the post-closing trial balance) The company's accounting department has gathered the following budgeting information for the first quarter of 2019 Click the icon to view the budgeting information ) Additional information a Direct materials purchases are paid 70% in the quarter purchased and 30% in the next quarter b. Direct labor, manufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred c. Accounts payable at December 31, 2018 are paid in the first quarter of 2019 Read the requirements Budgeted Income Statement For the Quarter Ended March 31, 2019 Sales Revenue Cost of Goods Sold Gross Proft Selling and Administrative Expenses Income before Income Taxes Income Tax Expense Enter any number in the edit fields and then click Check Answer

Answer 1

Bardley Company
Budgeted Income Statement for the Quarter Ended 31 Mar,17
Sales		$305,000.00
Less:COGS		-$72,000.00
Gross Profit		$233,000.00
Selling and Admin Expense
Less:Salaries	$7,000.00
Rent	$2,000.00
Insurance	$1,100.00
Depreciation	$550.00
Supplies	$15,250.00	-$25,900.00
Income Before Taxes		$207,100.00
Less:Taxes		-$41,000.00
Net Income		$166,100.00