Orange Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below.

		Product JB 50		Product JB 60
Sales budget:
Anticipated volume in units		401,600		203,100
Unit selling price		$21		$27
Production budget:
Desired ending finished goods units		27,100		17,000
Beginning finished goods units		31,100		13,300
Direct materials budget:
Direct materials per unit (pounds)		2		3
Desired ending direct materials pounds		33,300		17,600
Beginning direct materials pounds		41,800		12,000
Cost per pound		$3		$3
Direct labor budget:
Direct labor time per unit		0.4		0.6
Direct labor rate per hour		$11		$11
Budgeted income statement:
Total unit cost		$13		$21

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $662,000 for product JB 50 and $365,000 for product JB 60, and administrative expenses of $544,000 for product JB 50 and $345,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

1) Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products).

Orange Inc.

For the Year Ending December 31,2020

JB 50 JB 60 Total

a)Sales	$8,43360	$5,483,700	$13,917,300
b)Cost of Goods Sold
c)
d)
e)
f)
g)
h)
i)
j)
k)
l)

Thank You