What is the budgeted total unit cost and multiple step income statement given the information below?

Sales for the company's year were 1M units with 22% sold in Q1, 23% sold in Q2, 27% sold in Q3 and 28% sold in Q4. Units sold in Q4 were sold for $46 per unit while the rest of the year's units were sold for $40 per unit. Management desires to maintain ending finished goods inventories of 19% of next quarter's budgeted sales volume. Direct materials for each unit requires 2 pounds of materials at $9 per pound and management maintains raw material inventories at 20% of the next quarter's production requirements. Production requirements for the first quarter of next year are 505,000 pounds. The company budgets 0.3 hours of direct labor per unit with labor costs of $11 per hour. Manufacturing overhead is $18 per direct labor hour and selling and administrative expenses for the year are $6,793,000.

Answer rating: 100% (QA)

Prepare a multistep income statement as follows The requ... View the full answer