27-3 and 27-4

Exercise 27-3 Learning Objective 2 Objective: To prepare a budgeted income statement Spencer Corporation plans to sell 1,500 units in 20X1. Unit price data are as follows: sales price, $450, direct materials, $90; direct labor, $60; factory overhead, 90% of direct labor cost; selling expenses, $36; and general expenses, $24. Directions: Prepare a budgeted income Check Figure Net operating income $279,000 27900n ncoe statement through net operating Exercise 27-4 Learning Objective 3 Objective: To prepare a cash budget Allen Corporation begins January 20X1 with a cash balance of $32,240. The following additional budget data relate to cash for January 20X1: Check Figure Ending balance-$40,740 Collections on account Operating expenses requiring cash Equipment purchase for cash Manufacturing costs using cash Cash sales Interest received $95,000 45,000 10,000 75,000 45,000 1,500 3,000 Dividends paid Directions: Prepare a cash budget for January 20X1