Product JB 50 Product JB 60

Sales budget:

Anticipated volume in units 404,200 201,400

Unit selling price $21 $28

Production budget:

Desired ending finished goods units 29,100 16,800

Beginning finished goods units 31,200 14,600

Direct materials budget:

Direct materials per unit (pounds) 1 2

Desired ending direct materials pounds 32,000 19,5000

Beginning direct materials pounds 41,700 14,100

Cost per pound $3 $3

Direct labor budget:

Direct labor time per unit 0.4 0.6

Direct labor rate per hour $12 $12

Budgeted income statement:

Total unit cost $12 $22

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $663,000for product JB 50 and $364,000for product JB 60, and administrative expenses of $541,000for product JB 50 and $342,000for product JB 60. Interest expense is $150,000. Income taxes are expected to be 30%.

Prepare the budegeted multiple-step income statement for the year.