) Sports Bars, Inc., produces energy bars. Management estimates all selling and administrative costs are fixed....
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) Sports Bars, Inc., produces energy bars. Management estimates all selling and administrative costs are fixed. Quarterly selling and administrative cost estimates for the coming year follow. Salaries $170,000 Rent $ 65,000 $120,000 Advertising Depreciation $75,000 $ 36,000 Other Required: a. Use the information presented previously to prepare a selling and administrative budget. Refer to the format shown in Figure 9.8. b. Use the information from the previous problem and from requirement a of this problem to prepare a budgeted income statement. Refer to the format shown in Figure 9.9. c. How will management use the information presented in the budgeted income statement? PROBLEMS (continued) 40. Selling and Administrative Budget and Budgeted Income Statement a. Selling and administrative budget Salaries Rent C. Advertising Depreciation Other Total selling and administrative costs Deduct depreciation Cash payments for selling and administrative PROBLEMS (continued) 40. Selling and Administrative Budget and Budgeted Income Statement (continued) b. Budgeted income statement Sports Bars, Inc. Selling and Administrative Budget Year Ending December 31 Sales (from sales budget) Deduct cost of goods sold Gross margin Deduct selling and administrative costs Net income (loss) 2 Per unit cost of goods sold calculation: Direct materials (from direct materials purchases budget) Direct labor (from direct labor budget) Manufacturing overhead (from manufacturing overhead budget) Total cost of goods sold per unit Quarter Sports Bars, Inc. Budgeted Income Statement Year Ending December 31 Quarter 3 Year $391,000 Year Year $2,024,200 ) Sports Bars, Inc., produces energy bars. Management estimates all selling and administrative costs are fixed. Quarterly selling and administrative cost estimates for the coming year follow. Salaries $170,000 Rent $ 65,000 $120,000 Advertising Depreciation $75,000 $ 36,000 Other Required: a. Use the information presented previously to prepare a selling and administrative budget. Refer to the format shown in Figure 9.8. b. Use the information from the previous problem and from requirement a of this problem to prepare a budgeted income statement. Refer to the format shown in Figure 9.9. c. How will management use the information presented in the budgeted income statement? PROBLEMS (continued) 40. Selling and Administrative Budget and Budgeted Income Statement a. Selling and administrative budget Salaries Rent C. Advertising Depreciation Other Total selling and administrative costs Deduct depreciation Cash payments for selling and administrative PROBLEMS (continued) 40. Selling and Administrative Budget and Budgeted Income Statement (continued) b. Budgeted income statement Sports Bars, Inc. Selling and Administrative Budget Year Ending December 31 Sales (from sales budget) Deduct cost of goods sold Gross margin Deduct selling and administrative costs Net income (loss) 2 Per unit cost of goods sold calculation: Direct materials (from direct materials purchases budget) Direct labor (from direct labor budget) Manufacturing overhead (from manufacturing overhead budget) Total cost of goods sold per unit Quarter Sports Bars, Inc. Budgeted Income Statement Year Ending December 31 Quarter 3 Year $391,000 Year Year $2,024,200
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Related Book For
Managerial Accounting An Integrative Approach
ISBN: 9780999500491
2nd Edition
Authors: C J Mcnair Connoly, Kenneth Merchant
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