Budgets

During July of the current year the management of Berry Fresh Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases at $100 per case for August. Inventory planning information is provided as follows:

Finished Goods Inventory:

Cases Cost

Estimated finished goods inventory, August 1 300 $12,000

Desired Finished Goods inventory, August 31 175 7,000

Materials Inventory:

Cream Base (ozs.) Oils (ozs.) Bottles (Bottles)

Estimated materials inventory, August 1 250 290 600

Desired finished goods inventory, August 31 1,000 360 240

There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in the cost per unit or estimated units per case operating data from January.

Instructions

1. Prepare the August budgeted income statement, including selling expenses.