Bramble Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below.

		Product JB 50		Product JB 60
Sales budget:
Anticipated volume in units		401,100		202,100
Unit selling price		$23		$27
Production budget:
Desired ending finished goods units		26,100		19,800
Beginning finished goods units		31,800		14,200
Direct materials budget:
Direct materials per unit (pounds)		2		2
Desired ending direct materials pounds		33,800		18,000
Beginning direct materials pounds		41,000		14,400
Cost per pound		$3		$3
Direct labor budget:
Direct labor time per unit		0.4		0.6
Direct labor rate per hour		$12		$12
Budgeted income statement:
Total unit cost		$12		$22

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $662,000 for product JB 50 and $363,000 for product JB 60, and administrative expenses of $544,000 for product JB 50 and $343,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

PREPARE THE BUDGETED INCOME STATEMENT

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Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products).

BRAMBLE INC. Budgeted Income Statement December 31, 2017For the Quarter Ending December 31, 2017For the Year Ending December 31, 2017
		JB 50		JB 60		Total
Total Operating ExpensesPurchasesEnding InventoryCost of Goods SoldOperating ExpensesBeginning InventoryNet Income / (Loss)Income Tax ExpenseSalesSelling ExpensesAdministrative ExpensesIncome from OperationsInterest ExpenseGross ProfitIncome before Income Taxes		$		$		$
Selling ExpensesIncome from OperationsTotal Operating ExpensesIncome Tax ExpenseAdministrative ExpensesInterest ExpenseBeginning InventoryCost of Goods SoldEnding InventorySalesNet Income / (Loss)Gross ProfitOperating ExpensesIncome before Income TaxesPurchases
Net Income / (Loss)Ending InventoryIncome before Income TaxesSalesSelling ExpensesIncome Tax ExpenseBeginning InventoryIncome from OperationsCost of Goods SoldTotal Operating ExpensesInterest ExpenseAdministrative ExpensesGross ProfitOperating ExpensesPurchases
Gross ProfitOperating ExpensesIncome before Income TaxesIncome Tax ExpenseSelling ExpensesAdministrative ExpensesBeginning InventoryCost of Goods SoldIncome from OperationsInterest ExpenseEnding InventoryPurchasesTotal Operating ExpensesSalesNet Income / (Loss)
Income from Operations Net Income / (Loss) Administrative Expenses Income Tax Expense Income before Income Taxes Sales Interest Expense Operating Expenses Gross Profit Cost of Goods Sold Purchases Beginning Inventory Selling Expenses Total Operating Expenses Ending Inventory
Gross Profit Purchases Cost of Goods Sold Income Tax Expense Sales Selling Expenses Total Operating Expenses Ending Inventory Income before Income Taxes Administrative Expenses Beginning Inventory Operating Expenses Income from Operations Interest Expense Net Income / (Loss)
Cost of Goods SoldTotal Operating ExpensesPurchasesSalesIncome before Income TaxesAdministrative ExpensesSelling ExpensesBeginning InventoryIncome from OperationsEnding InventoryInterest ExpenseGross ProfitIncome Tax ExpenseNet Income / (Loss)Operating Expenses
PurchasesCost of Goods SoldAdministrative ExpensesNet Income / (Loss)Income before Income TaxesBeginning InventoryOperating ExpensesSalesEnding InventoryGross ProfitSelling ExpensesTotal Operating ExpensesIncome from OperationsIncome Tax ExpenseInterest Expense		$		$
Interest ExpenseBeginning InventoryAdministrative ExpensesTotal Operating ExpensesEnding InventoryGross ProfitPurchasesCost of Goods SoldOperating ExpensesIncome before Income TaxesSelling ExpensesSalesIncome from OperationsIncome Tax ExpenseNet Income / (Loss)
Net Income / (Loss)Beginning InventoryEnding InventorySalesTotal Operating ExpensesAdministrative ExpensesInterest ExpenseOperating ExpensesPurchasesGross ProfitIncome before Income TaxesSelling ExpensesCost of Goods SoldIncome from OperationsIncome Tax Expense
Income before Income TaxesCost of Goods SoldEnding InventorySelling ExpensesOperating ExpensesIncome Tax ExpenseAdministrative ExpensesPurchasesSalesIncome from OperationsTotal Operating ExpensesBeginning InventoryGross ProfitInterest ExpenseNet Income / (Loss)
Selling ExpensesIncome from OperationsTotal Operating ExpensesPurchasesAdministrative ExpensesIncome Tax ExpenseNet Income / (Loss)Beginning InventorySalesOperating ExpensesInterest ExpenseCost of Goods SoldEnding InventoryGross ProfitIncome before Income Taxes						$