equired information

[The following information applies to the questions displayed below.] FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements.

		Type of Box
	C				P
Direct material required per 100 boxes:
Paperboard ($0.28 per pound)		50	pounds			90	pounds
Corrugating medium ($0.14 per pound)		40	pounds			50	pounds
Direct labor required per 100 boxes ($14.00 per hour)		0.20	hour			0.40	hour

The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 465,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours.

Indirect material	$	14,100
Indirect labor		66,470
Utilities		45,000
Property taxes		30,000
Insurance		23,000
Depreciation		53,000
Total	$	231,570

The following selling and administrative expenses are anticipated for the next year.

Salaries and fringe benefits of sales personnel	$	135,000
Advertising		30,000
Management salaries and fringe benefits		150,000
Clerical wages and fringe benefits		46,500
Miscellaneous administrative expenses		7,500
Total	$	369,000

The sales forecast for the next year is as follows:

	Sales Volume				Sales Price
Box type C		470,000	boxes		$	140.00	per hundred boxes
Box type P		470,000	boxes			200.00	per hundred boxes

The following inventory information is available for the next year. The unit production costs for each product are expected to be the same this year and next year.

	Expected Inventory January 1			Desired Ending Inventory December 31
Finished goods:
Box type C	14,500	boxes		9,500	boxes
Box type P	24,500	boxes		19,500	boxes
Raw material:
Paperboard	15,500	pounds		5,500	pounds
Corrugating medium	6,500	pounds		11,500	pounds

7. Prepare the budgeted income statement for the next year. (Do not round intermediate calculations.)

Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent.

7. Prepare the budgeted income statement for the next year. (Do not round intermediate calculations.)