Cubs Incorporated manufactures a product with a selling price of $60 per unit. Units and monthly cost data follow Variable Selling and administrative Direct materials Direct labor Variable manufacturing overhead 5 per unit sold 12 per unit manufactured 12 per unit manufactured 6 per unit manufactured Fixed Selling and administrative 17,000 per month Manufacturing (including depreciation of $11,000) 34,000 per month Cubs, Inc. pays all bills in the month incurred. All sales are on account with 50 percent collected the month of sale and the balance collected the following month. There are no sales discounts or bad debts Cubs, Inc. desires to maintain an ending finished goods inventory equal to 20 percent of the following month's sales and a raw materials inventory equal to 10 percent of the following month's production January 1, 2017, inventories are in line with these policies. Actual unit sales for December and budgeted unit sales for January, February, and March of 2017 are as follows: CUBS INCORPORATED Sales Budget For the Months of January, February, and March 2017 Month December January February March Sales- Units 1,250 10,000 15,000 13,000 Sales Dollars $675,000 $600,000 $900,000 $780,000 Additional information: The January 1 beginning cash is projected as $6,000 For the purpose of operational budgeting, units in the January 1 inventory of finished goods are valued at variable manufacturing cost Each unit of finished product requires one unit of raw materials Cubs, Inc. intends to pay a cash dividend of $12,000 in January NOTE: For the entire problem - do not use any negative signs with your answers unless appropriate for net income(loss) or ending balance. Cubs Incorporated Budgeted Contribution Income Statement For the Month of January 2017 Sales 600,000 Less variable costs: Cost of goods sold $136,320X Selling and administrative 50,000 50,000 X Contribution 617,000 X Less fixed costs: Manufacturing overhead 34,000 scllirng arid adiisiraiivc 17,000 51,000 $169,000 X Net income