Costs incurred for

2022

are as follows (V stands for variable; F stands for fixed):

Direct materials used costs	$149,500	V
Direct manufacturing labour costs	25,500	V
Plant energy costs	6,000	V
Indirect manufacturing labour costs	16,000	V
Indirect manufacturing labour costs	14,000	F
Other indirect manufacturing costs	12,000	V
Other indirect manufacturing costs	30,000	F
Marketing, distribution, and customer-service costs	124,000	V
Marketing, distribution, and customer-service costs	46,000	F
Administrative costs	53,000	F

Variable manufacturing costs are variable with respect to units produced. Variable marketing, distribution, and customer-service costs are variable with respect to units sold.

Inventory data are as follows:

	Beginning,	Ending,
	January 1, 2022	December 31, 2022
Direct materials	0	kilograms	2,400	kilograms
Work in process	0	units	0	units
Finished goods	0	units	?	units

Production in 2022 was 115,000 units. Two kilograms of direct materials is used to make one unit of finished product.

Revenues in

2022

were

$475,200.

The selling price per unit and the purchase price per kilogram of direct materials were stable throughout the year. The company's ending inventory of finished goods is carried at the average unit manufacturing costs for

2022.

Finished goods inventory at December 31,

2022,

was

$15,400.

Assume management predicts that the selling price per unit and variable cost per unit will be the same in

2023

as in

2022.

Fixed manufacturing costs and marketing, distribution, and customer-service costs in

2023

are also predicted to be the same as in

2022.

Sales in

2023

are forecast to be

130,000

units. The desired ending inventory of finished goods, December 31,

2023,

is

11,000

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

2023.

The company uses the first-in, first-out inventory method. Management has asked that you prepare a budgeted statement of comprehensive income for

2023.

On December 31,

2022,

finished goods inventory is

7,000

units.

Requirement 1. Calculate the units of finished goods produced in

2023.

Target ending finished goods, Dec. 31, 2023		units
Forecasted sales for 2023		units
Total finished goods required in 2023		units
Beginning finished goods, Jan. 1, 2023		units
Finished goods production required in 2023		units

Part 2

Requirement 2. Prepare a budgeted statement of comprehensive income for

2023.

Finish the income statement by entering the amounts and calculating the operating income/(loss). (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell. Use parentheses or a minus sign for a net loss.)

Sudbury Office Equipment
Budgeted Statement of Comprehensive Income
For the Year Ended December 31, 2023
	Cost of goods sold:
	Operating costs:
	Operating income/(loss)