Kimona City has undertaken its budget planning for the coming accounting period.

Required
Prepare a budgeted statement of profit or loss for the coming accounting period.

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Budget item Sales Cost of inventory Raw materials inventory Raw material cost Selling and administration costs Budget data 40 000 units; selling price $80 Direct materials: 2 kilograms @ $5 per kilogram Direct labour: 3 hours @ $12 per hour Indirect manufacturing costs: $6 per direct labour hour Beginning balance: 10000 kilograms Ending balance: 15000 kilograms $5 per kilogram $200 000