Problem 21-6A (Part Level Submission) Krause Industries' balance sheet at December 31, 2016, is presented below. KRALSE INDUSTRIES Balance Sheet December 31, 2016 $7,500 73,500 26,160 107,160 30,360 $137,520 Current Assets Cash Accounts receivable Finished goods inventory (1,500 units) Total current assets Property, Plant, and Equipment Equipment $40,670 Less Accumulated depreciation 10,310 Total assets Liabilities and Stockholders' Equity Lates Notes payable Accounts payable Total abilities Stockholders' Equity Common stock $37.970 Retained earnings 27,410 Total stockholders equity Total abilities and stockholders' equity $25,170 46.970 72,140 65, 0 $137.520 Budgeted data for the year 2017 include the following 2017 Quarter 4 Total Sales budget (8,000 units at $32) $76,800 $256,000 Direct materials used 14,990 6 2,500 Direct labor 12,500 50,900 Mandacturing overhead applied 10.000 49,630 Selling and administrative expenses 16,360 75,000 To meet sales requirements and to have 2.500 units of finished goods on hand at December 31, 2017, the production budget shows 9,000 required of output. The total cost of production is expected to be $18. Krause uses the first in, first out (FIFO) inventory costing method. Interest expense is expected to be $3,500 for the year Income taxes are expected to be 10% of income before income taxes. In 2017, the company expects to dedare and pay an $8,450 cash dividend The company's case budou shown expected chance of $5.50 December 2017. All sales and purchases are on account. It expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter Direct materials purchased from suppliers are paid 50% in the quarter incurred and the resinder in the following quarter Purchases in the fourth quarter were the same as the materials used in 2017, the company expects to purchasestional equipment costing $11.120 39,079 of depreciation expense que is included in the budget data and spit equally between manufacturing overhead and selling and administrative expenses. Krause expects to pay $8,700 on the outstanding notes payable balance plus all interest due and payable to December 31 (induded in interest expense $3,500, above), Accounts payable at December 31, 2017, includes amounts due suppliers (see above) plus other accounts payable of $7.410. Unpaid income taxes December wil be $5.710 Your answer is correct Prepare a budgeted statement of cost of goods sold KRAUSE INDUSTRIES Budgeted Cost of Goods Sold Is Kimmel, Accounting, 6e Help System Announcements CALCULATOR PRINTER VERSION KRAUSE INDUSTRIES Budgeted Cost of Goods Sold For the Year Ending December 31, 2017 Finished Goods Inventory. 1/1/17 26160 Cost of Goods Manufactured Direct Materials Used T Direct Labor T Manufacturing Overhead Applied Cost of Goods Available For Sale Finished Goods Inventory, 12/11/17 Cost of Goods Sold Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW AN LINK TO TEXT Attempts: 1 of 3 used (b) Prepare a budgeted multiple-step income statement for 2017. KRAUSE INDUSTRIES Budgeted Income Statement Open Show Work Click if you would like to show Work for this