Question
bradley company has the following post-closing trial balance on december 31 2018. cash:15000 accounts receivable 23200 raw materials invintory 11000 finished goods inventory 25900 equipment
bradley company has the following post-closing trial balance on december 31 2018. cash:15000 accounts receivable 23200 raw materials invintory 11000 finished goods inventory 25900 equipment 125000 all debit. credit: accumulated depreciation 35000 accounts payable 13600. the company's accounting department has gathered the following budgeting for the first quarter of 2019 : budgeted total sales on account 305000 budgeted direct materials to be purchased and used 32000 budgeted direct labor cost 12500 budgeted manufacturing overhead cost: variable manufacturing overhead 2100 depreciation 1300 insurance and property taxes 1350 budgeted cost of goods sold 72000 budgeted selling and administrative expenses: salaries expense 7000 rent expense 2000. additional information: a. direct materials purchases are paid70% in the quarter purchased and 30% in the next quarter. b. direct labor, manufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred. c. accounts payable at december 31 2018 are paid in the first quarter of 2019. requirement #1. prepare bradley company's budgeted income statement for the first quarter of 2019. requirement #2. prepare bradley company's budgeted balance sheet as of march 31 2019.
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