Budgeted income statement (continuation of 2-37). Assume management predicts that the selling price per unit and variable cost per unit will be the same in 2008 as in 2007. Fixed manufacturing costs and marketing, distribution, and customer service costs in 2008 are also predicted to be the same as in 2007. Sales in 2008 are forecast to be 122,000 units. The desired ending inventory of finished goods, December 31, 2008, is 12,000 units. Assume zero ending inventories of both direct materials and work in process. The company’s ending inventory of finished goods is carried at the average unit manufacturing costs for 2008. The company uses the first-in, first-out inventory method. Management has asked that you pre¬

pare a budgeted income statement for 2008. December 31, 2007, Finished Goods Inventory is 9,000 units.

Required 1. Units offinished goods produced in 2008 2. Budgeted income statement for 2008