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30 December, 09:21

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.

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  1. 30 December, 09:54
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    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
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