G. Prepare an ending finished goods inventory budget for the quarter. (Hint: You have already calculated the desired ending finished goods inventory quantity. Assume a stable per-unit rate and round the per-unit fixed factory overhead rate to two decimal places.)

Jones Corporation Ending Finished Goods Inventory Budget

Desired ending inventory	$fill in the blank 02c8a405bfae071_1
Direct materials	$fill in the blank 02c8a405bfae071_2
Direct labor	$fill in the blank 02c8a405bfae071_3
Overhead:
Variable overhead	$fill in the blank 02c8a405bfae071_4
Fixed overhead	$fill in the blank 02c8a405bfae071_5
Unit cost	$fill in the blank 02c8a405bfae071_6

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Partially correct

H. Prepare a cost of goods sold budget for the quarter.

Jones Corporation Cost of goods sold Budget

Direct materials	$fill in the blank 237312075060f8c_1
Direct labor	fill in the blank 237312075060f8c_2
Overhead	fill in the blank 237312075060f8c_3
Add: Beginning inventory	fill in the blank 237312075060f8c_4
Goods available for sale	fill in the blank 237312075060f8c_5
Less: Ending inventory	fill in the blank 237312075060f8c_6
Cost of goods sold	$fill in the blank 237312075060f8c_7

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Partially correct

I. Prepare a budgeted income statement for the quarterthe company falls into the 35 percent tax bracket for income taxes.

Jones Corporation Budgeted Income Statement

Fixed selling and administrative expensesLess: Variable selling and adm. expensesOperating incomeSalesSales	$Sales
Cost of goods soldFixed selling and administrative expensesLess: Variable selling and adm. expensesOperating incomeCost of goods sold	Cost of goods sold
Gross margin	$fill in the blank c9841cf9ffc6f7f_5
Less: Cost of goods soldLess: Income tax expenseLess: Variable selling and adm. expensesLess: SalesLess: Variable selling and adm. expenses	Less: Variable selling and adm. expenses
Less: Cost of goods soldLess: Fixed selling and administrative expensesLess: Income tax expenseLess: SalesLess: Fixed selling and administrative expenses	Less: Fixed selling and administrative expenses
Cost of goods soldIncome tax expenseOperating incomeSalesOperating income	$Operating income
Less: Cost of goods soldLess: Income tax expenseLess: SalesLess: Income tax expense	Less: Income tax expense
Net income	$fill in the blank c9841cf9ffc6f7f_14

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Back Story:

ones Corporation has the following budgeted sales for the selected four-month period:

Month	Unit Sales
July	20,000
August	35,000
September	25,000
October	30,000

Sales price per unit is $180

Plans are to have an inventory of finished product equal to 20 percent of the unit sales for the next month. There were 4,000 units in beginning inventory on July 1.

Three pounds of materials are required for each unit produced. Each pound of material costs $20. Inventory levels for materials equal 30 percent of the needs for the next month.

Desired ending inventory for September is 25,200 pounds of material. Beginning inventory for July was 20,700 pounds of material.

Each unit requires 0.6 hours of direct labor and the average wage rate is $16 per hour.

Variable overhead rate is $3.50 per direct labor hour. There is also fixed overhead of $22,000 per month.

The company pays a 3% commission on sales.

The Company has fixed selling and administrative expenses as follows:
Rent	$6,000/month
Utilities	$1,200/month
Advertising	$400/month
Office Salaries	$35,000/month