Preperation of Individual Budgets durring the first calendar quarter of 2016, Clinton Corporation is planning to manufacture a new product and introduce it in two regions. Market research indicates that sales will be 7,000 units in the urban region at a unit price of $53 and 6,000 units in the rural regin at $48 each. Because the sales manager expects the product to catch on, he has asked for production sufficient to generate a 5,000 - unit ending inventory. The production manager has funished the following estimates related to manufacturing costs and operating expenses:

Preparation of Individual Budgets ing the first calendar quarter of 2016, Clinton Corporation is planning to manufacture a new product and introduce it in two regions. Market research indicates that sales will be 7,000 units in the urban region at a unit price of $53 and 6,000 units in the rural region at $48 each. Because the sales manager expects the product to catch an, he has asked for production sufficient to generate a 5,000-unit ending inventory. The on manager has furnished the following estimates related to manufacturing costs and operating expenses: Variable Fixed (per unit) (total) Manufacturing costs: Direct materials A (4 lb. @ $3.15/b.) $12.60 9.30 7.50 B (2 lb. @ $4.65/lb.) Direct labor (0.5 hours per unit) Manufacturing averhead Depreciation Factory supplies Supervisory salaries Other $7,650 0.90 4,500 28,800 0.75 22.950 Operating expenses Advertising Sales salaries& commissions Other 22,500 1.50 15,000 090 3,000 Administrative Office salaries 2,700 0.15 1,050 0.08 1,950 Supplies Varies per unit sold, nat per unit produced Supervisory salaries 28,800 V 28,800 | Other 22,950 V 13,500 36,450 Total manufacturing overhead $ 93,600 6. Selling and administrative expenses Fixed Variable Total Selling expenses: Advertising 22,500|v' 15,000 3,000 $ 0s 22,500 Sales salaries and commissions 19,500 34,S00 Other 11,700 V 14,700 Total selling expenses 71,700 Administrative expenses Office salaries 2,700 1,050 1,950 2,700 3,750 3,390 V Supplies 2,700 Other 1,440 | Total administrative expenses 9,840 Total selling and administrative expenses 81,540v b: Using data generated in requirement (a), prepare a budgeted income staterment for the calendar quarter. Assume an averall effective inco tax rate of 30%. Round answers to the nearest whole number. Round answers to the nearest whole number Do not use negative signs with your answers Clinton Corporation Budgeted Income Statement For the Quarter Ended March 31, 2016 Sales 659,000 Cost of Goods Sold: Beginning Inventory-Finished Goods Material Beginning Inventory Material Material Purchases 442,500 Material Available 442,500 48,300 V Ending Inventory- Material 394,200 135,000 93,600 Direct Material Direct Labor Manufacturing Overhead 622,800 Total Manufacturing Cost Cost of Goods Available for Sale 622,800 173,000 Ending Inventory - Finished Goods 449,800 Cost of Goods Sold