Bathworks produces hair and bath products Bathworks owner would like
Bathworks produces hair and bath products. Bathworks’ owner would like to have an estimate of the company’s net income in the coming year.

Project Bathworks’s net income next year by completing the operating budgets and budgeted income statement that follows. Assume that the selling price will remain constant.
1. Sales budget:

2. Production budget:

aDesired units of ending finished goods inventory 5 10% of next quarter’s budgeted sales.
bDesired units of beginning finished goods inventory 5 10% of current quarter’s budgeted sales.
3. Direct materials purchases budget:

4. Direct labor budget:

5. Overhead budget:

6. Selling and administrative expenses budget:

7. Cost of goods manufactured budget:
Cost of Goods Manufactured Budget
For the Year Ended December 31

8. Budgeted incomestatement:
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