Frontleg Chocolate Company manufactures and sells a premium chocolate called PremiumChoco. The following data are available for preparing budgets for PremiumChoco for June through August of 2020. 1. Sales: June , 30,000 pounds; July, 56,000 pounds, August 58,000 pounds. 2. Direct materials: each pound of PremiumChoco requires 5 pounds of cacao seeds at a cost of $2.95 per pound and 4 pounds of cane sugar at $.50 per pound. 3. Desired inventory levels: Type of Inventory May 1 June 1 July 1 August 1 PremiumChoco (pounds) 7,000 8,000 15,000 18,000 cacao seeds (pounds) 6,000 9,000 10,000 13,000 cane sugar (pounds) 5,000 14,000 20,000 25,000 4. Direct labor: direct labor time is 30 minutes per pound at an hourly rate of $20 per hour. 5. Selling and administrative expenses are expected to be .05 cents per unit sold plus $82,000 per month. 6. Your assistant has prepared two budgets: (1) The manufacturing overhead budget shows expected costs to be 150% of direct labor cost (all variable costs). 7. The company uses a 30% markup percentage on total cost 8. Interest Expense is $150,000. 9. Income taxes are expected to be 21% of income before income taxes.

Instructions 1) Prepare the budgeted multi-step income statement