P 7. The Bottled Water Company has been bottling and selling water since 1940. Ginnie Adams, the current owner of The Bottled Water Company, would like to know how a new product would affect the company’s net income in the coming year.

Required Calculate The Bottled Water Company’s net income for the new product in the coming year by completing the operating budgets and budgeted income statement that follow.

1. Sales Budget:

2. Production Budget:

3. Direct Materials Purchases Budget:

4. Direct Labor Budget:

5. Overhead Budget:

6. Selling and Administrative Expense Budget:

7. Cost of Goods Manufactured Budget:

8. Budgeted Income Statement:

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The Bottled Water Company Sales Budget For the Year Ended December 31 Quarter 1 2 3 4 Year Sales in units 40,000 30,000 50,000 55,000 175,000 Selling price per unit X $1 ? ? x ? ? Total sales $40,000 ? ? ? ?