Budgeted income statement (continuation of 2-22). (30 minutes)

Assume management predicts that the selling price per unit and variable cost per unit will be the same in 2000 as in 1999. Fixed manufacturing costs and marketing, distribution and customerservice costs in 2000 are also predicted to be the same as in 1999. Sales in 2000 are forecast to be 122,000 units. The desired closing stock of finished goods, 31 December 2000, is 12,000 units. Assume zero closing stock of both direct materials and work in progress. The company’s closing stock of finished goods is carried at the average unit manufacturing costs for 2000. The company uses the first-in, first-out stock method. Management has asked that you prepare a budgeted income statement for 2000.  l01 REQUIRED 1. Units of finished goods produced in 2000.

2. Budgeted income statement for 2000.