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

Chapter 22, Problems #7

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:


Ginnie Springs Company has been bottling and selling water since


2. Production budget:

Ginnie Springs Company has been bottling and selling water since


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

Ginnie Springs Company has been bottling and selling water since


4. Direct labor budget:

Ginnie Springs Company has been bottling and selling water since


5. Overhead budget:

Ginnie Springs Company has been bottling and selling water since


6. Selling and administrative expenses budget:

Ginnie Springs Company has been bottling and selling water since


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


Ginnie Springs Company has been bottling and selling water since


8. Budgeted incomestatement:

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Related Book For answer-question

Principles of Accounting

12th edition

Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson

ISBN: 978-1133626985

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