Peterson Pipes prepares detailed budgets for all four quarters of the year. The following information pertains to Peterson€™s budget for 2009:

Peterson expects fixed manufacturing overhead to be $150,000, $172,250, $169,250, and $174,300 for quarters 1 through 4 of 2009, respectively. Also, Peterson expects fixed selling and administrative costs to be $80,000, $95,000, $106,000, and $100,000 for quarters 1 through 4, respectively. Peterson does not incur any expenditure related to variable overhead or any variable selling and administrative costs. Finally, Peterson plans to begin and end each quarter with zero work in process inventory.

Required:
Prepare a budgeted contribution margin income statement for Peterson Pipes for each quarter of2009.

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Beginning Goods Inventory Beginning Finished Direct Labor Materials Materials Purchases Invetory Revenmes First quarter Second quarter Third quarter Fourth quarter First quarter, 2010 $795,200 $240,000 $235,000 $400,000 $380,000 390,400 385,600 391,250 396,500 834,200 864,450 856,250 244,500 21 288,500 248,600 1,200 222,300 207,500 420,000 415,000 425,000 410,000