PRINTER VERSION tBACK NEXT Sarasota Inc. is preparing its annual budgets for the year ending December 31 2017. Accounting assistants furnish the data shown below ES Product J8 50 Product J 60 Sales budget Anticipated volume in units 404.400 201,000 Unit selling price $22 $27 Production budget: Desired ending finished goods units 28,800 17,600 Beginning finished goods units 34.100 13,100 Direct materials budget: dy Direct materials per unit (pounds) Desired eriding direct materials pounds 34,600 16,400 Beginning direct materials pounds 13,000 41.100 Cost per pound $4 Direct labor budget: Direct labor time per unit 0.3 0.6 Direct labor rate per hour $10 $10 Budgeted income statement $22 Total unit cost $13 An accounting assistant has prepared the detaled manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $662,000 for product J8 50 and $365,000 for product B 60, and administrative expenses of $545,000 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% wer is partially correct. Try again. Your ans Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). SARASOTA INC. Budgeted Income Statement For the Year Ending December 31, 2017 JB 50 JB 60 Total Sales 8896800 5427000 14323800 Cost of Goods Sold 5257200 4422000 9679200 Gross Profit 3639600 1005000 4644600 Operating Expenses Selling Expenses 662000 365000 1027000 Administrative Expenses 545000 345000 890000 Total Operating Expenses 1207000 710000 1917000 Income hefore Income Taxes 2432600 295000 CALCULATOR 3639600 1005000 4644600 Gross Profit Operating Expenses 1027000 Selling Expenses 365000 662000 345000 Adminjstrative Expenses 545000 890000 Total Operating Expenses 710000 1207000 1917000 00 243 295 Income before Income Taxes 2727600 Income Tax Expense 818280 Net Income/ (Loss) 1909320 x x