Zordich Inc. has gathered the following budgeting information for next year and has asked you to prepdre their master budget. Soles for the final quarter of the prior year total 2,900 units. Expected Seles on Units) for the current year are: 2610 (Quarter 1), 1,740 (Quarter 2), 2,320 (Quarter 3), and 2,320 (Quarter 4). Sales for the first quar&r of the following year total 3,480 units. The selling price is $620 per unit in the first three quarters of the year, and $650 per unit in the final quartu Company policy calls for a given quarter's ending finished goods inventory to equal 50% of The next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1,305 units, which complies with the policy. The product's manufacturing cost is $199 per unit, including per unit costs of $120 for materials (8 lbs. at $15 per lb.), $54 for direct labor (3 hours x Requirement Prepare the Administrative Expense Budget for Zordich Inc. Quarterly geneal and administntive include $84,000 of $50,000 per quarter. insurance Of $40,000 per quarter, Straightline depreciation Of $40,000 per quarter, and 1% monthly interest on the $400,000 long-term note payable (3% quarterly). General and e Budget FM ttw ended 31, 2018 Total $18 direct labor rate per hour), $21 for vorioble overhead, ond $4 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on t Using mfomation fmm the budget and calculate the of for The product's is $199 p r e unit, including pe r unit costs of for materials ot production equipment, $15,100; factory utilities, $18,900, and other factory overhead of $3,700. for direct (3 x S 18 labor per hour), variable and $4 for Annual fixed overhead consists, evenly the year, of depreciation 00 production equipment, SIS,IOO; utilities, S 18,900. and of $3,700. Company policy also cells for a given quarter's ending raw materials inventory to equal 60% Of next quarter's expected materials needed for production_ The prior year-end inventory is 10,440 lbs of materials, which complies with the policy. The company expects to have 16,704 lbs. o/ materials in inventory at year-end. The company has no work in process inventory at the ene of any quarter. Sales representatives' commissions are 18% Of sales and are paid in the quarter of the sales-Jhe 01 ot Sold Budget the 31.2018 e. f. sales manager's quarterly salary will be $198,000 in the first three quarters of the year, and $211,000 in the final quarter. Quarterly general ond administrative expenses include $84,000 administrative salaries, rent; expense of $50,000 per quarter, insurance expense of $40,000 per quarter, straight- line depreciation of $40,000 per quarter, and 1% monthly interest on the $400,000 long-term note payable (12% annually). Income taxes Will be assessed at 35%, and are paid in the quarter incurred. Requirement Prepare the Budgeted Income Statement for the year for Zordich Inc' Interest on the $400,000 long-term note payable is 1% per month (12% annually). Income taxes will be assessed at 35%, and are paid in the quarter incurred. Budgeted Statement For the yearended December 31,201 Sales Cost of goods sold s prom Operating expenses: Seling expenses atiVe expenses Interest expense Total operating expenses Income before income taxes Income tax expense Net income