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Kalven Company has budgeted the following for the year 2020: 1. Sales: 53,200 units; unit selling price $70 2. Cost of one unit of finished
Kalven Company has budgeted the following for the year 2020:
1. Sales: 53,200 units; unit selling price $70
2. Cost of one unit of finished goods: direct materials, 2kg at $4 per kg; direct labour, 4 hours at $11 per hour; and manufacturing overhead, $2 per direct labour hour.
3. Selling and administrative expenses: $161,000
4. Income taxes: 25% of income before income taxes.
Prepare a budgeted income statement for 2020.
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