Sandhill Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the following.

		Product JB 50		Product JB 60
Sales budget:
Anticipated volume in units		392,000		196,000
Unit selling price		$20		$25
Production budget:
Desired ending finished goods units		29,400		14,700
Beginning finished goods units		24,500		9,800
Direct materials budget:
Direct materials per unit (pounds)		2		3
Desired ending direct materials pounds		29,400		9,800
Beginning direct materials pounds		39,200		14,700
Cost per pound		$3		$4
Direct labor budget:
Direct labor time per unit		0.40		0.60
Direct labor rate per hour		$12		$12
Budgeted income statement:
Total unit cost		$13		$20

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $548,800 for product JB 50 and $352,800 for product JB 60, and administrative expenses of $529,200 for product JB 50 and $333,200 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 20%.

Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). SANDHILL INC. Budgeted Income Statement For the Year Ending December 31, 2022 JB 50 JB 60 Total $ 7840000 4900000 UA 12740000 oods Sold 5096000 3920000 9016000 i ofit 2744000 980000 3724000 3 Expenses xpenses 548800 i 352800 Pe 901600 i trative Expenses 529200 333200 i 862400 i rating Expenses 1078000 686000 1764000 om Operations A 5586000 $ 2254000 7840000 xpense 150000 i efore Income Taxes 7690000 ax Expense 1538000