Assume management predicts that the selling price per unit and variable cost per unit will be the same in 2024 as in 2022. Fixed manufacturing costs and marketing, distribution and customer-service costs in 2024 are also predicted to be the same as in 2022. Sales in 2024 are forecast to be 122 000 units.

The desired closing stock of finished goods, 31 December 2024, is 12 000 units. Assume zero closing stock of both direct materials and work in progress. The company’s closing stock of finished goods is carried at the average unit manufacturing costs for 2024. The company uses the first-in, first-out stock method. Management has asked that you prepare a budgeted income statement for 2024.

Required 1 Units of finished goods produced in 2024.

2 Budgeted income statement for 2024.