Problem 13-2 (Part Level Submission) Blue Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 403,900 $23 201,200 $28 26,400 32,900 16,700 12,600 Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost 33,900 42,700 $2 18,900 11,000 0.4 0.6 $14 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $665,000 for product JB 50 and $363,000 for product B 60, and administrative expenses of $544,000 for product JB 50 and $341,000 for product JB 60. Interest expense is $150,000 (not allocated to products), Income taxes are expected to be 30%. (e Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). BLUE INC. Budgeted Income Statement For the Year Ending December 31, 2017 JB 50 JB 60 Total Sales 9,289,700 5,633,600 14,923,300 Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses Administrative Expenses Total Operating Expenses Income from Operations Interest Expense Income before Income Taxes Income Tax Expense Net Income / (Loss)