Question

Ginnie Springs Company has been bottling and selling water since 1940. The company’s current owner would like to know how a new product would affect the company’s net income in the coming year.

Required
Calculate Ginnie Springs’ net income for the new product in the coming year by completing the operating budgets and budgeted income statement that follow. Assume that the selling price will remain constant.
1. Sales budget:


2. Production budget:


3. Direct materials purchases budget:
Ginnie Springs Company
Direct Materials Purchases Budget
For the Year Ended December 31


4. Direct labor budget:


5. Overhead budget:


6. Selling and administrative expenses budget:


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



8. Budgeted incomestatement:


$1.99
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  • CreatedMarch 26, 2014
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