$6,500,000 Sales (52,000 @ $125) Less: Cost of Goods Sold Beginning Inventory (5.500 @ $65) Direct Materials Direct Labor Factory Overhead (25% of $2,000,000) Cost of Goods Available for Sale Less: Ending Inventory (6,500 units) Gross Profit Less: Operating Expenses Selling Expenses (25% of $6,500,000) Administrative Expenses (110% of $950,000) Net Income $ 357,500 971,500 2.000.000 500,000 $3,829,000 423,000+ $3,406,000 $3.094,000 $1,625,000 1.045,000 2,670,000 $ 424,000 *5.500 units + 53.000 units - = 52,000 units; 1= 6.500 units 15.500 units @ $65 $357 500 1,000 units @ $65.50 = 65.500 6,500 units $423,000 where the unit cost for the last quarter of 19A is computed as follows: Cost of goods manufactured = $971,500 + $2,000,000+ $500.000 = $3,471,500 Unit cost = $3,471.500 = 53.000 thousand board feet = $65.50 h20 6.16 The Moore Distributor Company, Inc., has just received a franchise to distribute dishwashers. The company started business on January 1, 19A, with the following assets: Cash $45,000 Inventory 94,000 Warehouse, office, and delivery facilities and equipment 80,000 All facilities and equipment have a useful life of 20 years and no residual value. First-quarter sales are expected to be $360,000 and should be doubled in the second quarter. Third-quarter sales are expected to be $1,080,000. One percent of sales are considered to be uncollectible. The gross profit margin should be 30 percent. Variable selling expenses (except uncollectible accounts) are budgeted at 12 percent of sales and fixed selling expenses at $48,000 per quarter, exclusive of depreciation. Variable administrative expenses are expected to be 3 percent of sales, and fixed administrative expenses should total $34,200 per quarter, exclusive of depreciation. Prepare a budgeted income statement for the second quarter of 19A