Problem 13-2 (Part Level Submission) Sarasota 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 404,400 201,000 Unit selling price $22 $27 Production budget: Desired ending finished goods units 28,800 17,600 Beginning finished goods units 34,100 13,100 Direct materials budget: Direct materials per unit (pounds) 1 2 Desired ending direct materials pounds 34,600 16,400 Beginning direct materials pounds 41,100 13,000 Cost per pound $2 $4 Direct labor budget: Direct labor time per unit 0.3 0.6 Direct labor rate per hour $10 $10 Budgeted income statement: Total unit cost $13 $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 $365,000 for product JB 60, and administrative expenses of $545,000 for product JB 50 and $345,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

CALCULATOR PRINTER VERSION (BACK NEXT (e) Your answer is partially correct. Try again. Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). SARASOTA INC. Budgeted Income Statement For the Year Ending December 31, 2017 V JB 50 JB 60 Total Sales 8896800 5427000 14323800 Cost of Goods Sold 5257200 4422000 9679200 Gross Profit 3639600 1005000 4644600 Operating Expenses Selling Expenses 662,000 365000 1027000 Administrative Expenses 545,000 345000 890000 IDIT TO TOTT DOO ddleCHT DOO Selling Expenses 662,000 365000 1027000 K X Total Operating Expenses 1207000 710000 1917000 Income from Operations X Income before Income Taxes 2727600 Income Tax Expense 818280 Net Income /(Loss) 1909320 LINK TO TEXT LINK TO TEXT Attempts: 2 of 10 used